Key Takeaways Qualcomm is expanding its AI reach through a broader partnership with Hugging Face.QCOM will use Snapdragon, Dragonwing and Dragonfly to support AI workloads across devices.Automated tools aim to make Hugging Face model deployment faster on Qualcomm platforms. Qualcomm Incorporated (QCOM - Free Report) is expanding its presence in the artificial intelligence (AI) domain through a broader partnership with Hugging Face, aimed at accelerating open, developer-driven AI from devices to cloud systems. The deal reflects Qualcomm’s aim to become a major AI technology provider across the computing ecosystem.
Per the agreement, Qualcomm will leverage its high-performance, energy-efficient platforms, including Snapdragon, Dragonwing and Dragonfly, to support AI workloads across smartphones, PCs, wearables, automotive systems and data centers. Access to Hugging Face’s vast library of open AI models is expected to boost the adoption of its Dragonfly data center solutions.
The collaboration will also improve the developer experience by making AI model deployment faster and simpler. Automated tools will help developers onboard and optimize models from Hugging Face on Qualcomm-powered platforms with less manual effort, reducing development time for AI applications. The company is advancing into agentic AI, where intelligent systems can dynamically distribute tasks between on-device and cloud environments based on performance, cost and privacy requirements.
How Are Competitors Advancing?Qualcomm faces competition from Apple Inc. (AAPL - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) . Apple is enhancing its AI strategy by bringing more advanced AI features across iPhone, iPad, Mac and Apple Watch. The company is upgrading Siri AI to deliver more natural conversations and deeper app integration. Apple continues to focus on privacy-first AI through greater on-device processing.
AMD is growing its AI business by scaling its AI chip lineup to meet the rising demand for data center AI workloads. The company is working with cloud providers and AI developers to support large-scale AI training and inference. AMD continues to improve its AI software to make its platforms easier for customers to use.
QCOM’s Price Performance, Valuation and EstimatesQualcomm shares have gained 36.3% over the past year compared with the industry’s growth of 90.2%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company's shares currently trade at 18.23 forward earnings, lower than 34.86 for the industry.
Image Source: Zacks Investment Research
Earnings estimates for fiscal 2026 have declined 2% to $10.78 over the past 60 days, and those for fiscal 2027 have decreased 2.6% to $10.79.
Image Source: Zacks Investment Research
Qualcomm currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Intel (NASDAQ:INTC | INTC Price Prediction) is the loudest ticker on Wall Street right now, riding a turnaround narrative powered by NVIDIA’s $5.0 billion equity stake, SoftBank’s $2.0 billion investment, and $8.9 billion in total U.S. Government support.
But here’s what you should actually be watching: Taiwan Semiconductor Manufacturing (NYSE:TSM).
The Intel Rally Has Outrun the Business Intel shares are up 523.5% over the past year and 263.12% year to date, closing at $133.99. The fundamentals do not justify the ride. Q1 2026 produced a GAAP net loss of $3.728 billion, a $3.136 billion operating loss, and free cash flow of negative $3.867 billion. Intel Foundry, the centerpiece of the entire turnaround thesis, is still hemorrhaging cash, posting a $2.3 billion operating loss in Q3 2025 and a $3.2 billion operating loss in Q2 2025.
Wall Street remains cautious even as the chart rips. The trailing EPS sits at -$0.6, the forward multiple is 154, and the average analyst target of $94.14 implies meaningful downside from current levels with 31 Hold ratings outnumbering buy calls. Insiders are voting with their shares. CFO David Zinsner sold 18,353 shares at $109.82 on June 1, and the foundry operations chief sold 21,024 shares at $118.279 on May 29. Washington’s financial favoritism and unconfirmed process-node rumors have artificially pumped this struggling legacy chipmaker.
TSM Is the Compounder Hiding in Plain Sight Taiwan Semiconductor is the actual factory floor underneath every AI chip story, including Intel’s outsourced wafers. Three reasons retirement capital belongs here.
1. Profitable growth at scale. Q1 2026 revenue reached NT$1.134 trillion, up 21.45% year over year, while net income jumped 43.82% to NT$572.8 billion. Profit margin runs at 46.5%, operating margin at 58.1%, and return on equity at 36.2%. Quarterly earnings growth was 58.4% year over year. That is what compounding actually looks like.
2. The AI foundry monopoly. TSM holds 72% foundry market share, with 3nm now representing more than 50% of wafer revenue. Wafer revenue alone grew from NT$714 billion to NT$968 billion year over year. The company has logged an 18-quarter consecutive earnings beat streak, and analysts model roughly 28% compound EPS growth in coming years.
3. Industrial policy without the strings. The TSMC Arizona investment tax credit was lifted from 25% to 35% of qualified investments, effective January 1, 2026. TSM is harvesting the same CHIPS Act framework propping up Intel, plus subsidies in Germany and Japan, without surrendering an equity stake to the U.S. government. Of 19 analysts covering the stock, 17 are bullish and zero are bearish.
Shares trade at $462.12 on a forward P/E of 30, against a PEG of 1.439. Compare that to Intel’s 154 forward multiple on negative earnings, and the mispricing is obvious.
The Action The setup favors TSM’s foundry monopoly over Intel’s turnaround story, where the compounding economics already show up in the numbers.
Adobe (Nasdaq:ADBE) — the global technology leader that unleashes creativity, productivity and customer experiences through innovative tools and platforms — today announced that it has entered into a definitive agreement to acquire Topaz Labs, an AI company specializing in industry-leading video and image enhancement models.
Adobe empowers everyone from first-time creators to creative professionals and enterprises with groundbreaking AI tools and technology across every stage of the creative process. Adobe's creative AI portfolio brings together industry-leading AI models in Adobe Firefly the all-in-one creative AI studio and Adobe Creative Cloud applications including Photoshop, Lightroom, Premiere and more, delivering creative professionals pixel-level control and precision tooling.
As AI rapidly reshapes video and image creation, creatives are increasingly working across hybrid workflows that combine traditionally captured footage with AI-generated content, and they are expected to deliver high-quality results across a growing range of formats, devices and production methods. Topaz Labs provides a broad array of advanced AI models for video and image enhancement that analyze and improve existing visual content by sharpening detail, removing noise, restoring footage and increasing resolution, making them essential for any workflow that combines real-world capture with AI-generated imagery.
Topaz Labs develops professional quality AI video and image enhancement models and tools that are trusted by creative professionals such as Asteria Film Co, award-winning filmmaker Robert Stone and enterprises to deliver exceptional fidelity and high-quality results across professional filmmaking, documentary restoration, social content creation, photography and archival workflows. The company has developed proprietary AI models to support professional video use cases such as upscaling, sharpening, stabilization, frame interpolation, noise removal, footage restoration and more.
“Adobe Firefly, Firefly Services and Creative Cloud offer the industry’s best creative tooling and top AI models for creators and brands, and we’re excited to build on the strong demand for these products with Topaz Labs,” said David Wadhwani, President, Creativity & Productivity Business, Adobe. “Creators are creating more content by mixing captured and generated images and video, and with Topaz Labs we will give every creator the quality and control to easily produce that content at higher quality and resolution.”
“Building technology to make images and videos look their absolute best has been our life’s work for more than twenty years,” said Eric Yang, CEO of Topaz Labs. “We’ve always believed that technology should serve human creativity rather than replace it — and so has Adobe. Together, we believe we can dramatically expand what’s possible for filmmakers and creators everywhere.”
With Topaz Labs, Adobe will expand its video and image model offerings with state-of-the-art AI enhancement models in Adobe Firefly, Firefly Services and Creative Cloud apps, giving creators, designers, video professionals, photographers and enterprises the tools to achieve exceptional quality across every format and workflow. With millions of customers, Topaz Labs and its Emmy Award-winning AI technology will be integrated across Adobe's creative AI portfolio, giving creatives the ability to enhance footage, restore and remaster archival content, and blend AI-generated and traditionally captured content into seamless final productions. Topaz Labs will also bring its proprietary Neurostream technology that enables large, complex AI models to run locally on consumer devices, democratizing advanced image and video models previously limited to high-end systems or cloud-only usage and positioning Adobe to tap into the growing opportunity for efficient, on-device AI video.
After the transaction closes, Topaz Labs customers of all sizes can expect continued support and investment in future innovation and Topaz Labs products will remain available as standalone offerings through the company’s website. Upon close, Topaz Labs CEO Eric Yang will continue to lead the Topaz Labs team.
Transaction Details
The transaction is expected to close in the second half of 2026, subject to the receipt of required regulatory approvals and the satisfaction of other customary closing conditions.
Advisors
Freshfields US LLP is serving as legal advisor to Adobe in connection with the transaction. AXOM Partners is serving as exclusive financial advisor to Topaz Labs, and Goodwin Procter LLP is serving as legal advisor to Topaz Labs, in connection with the transaction.
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of applicable securities law, including those related to the expected timing, completion and effects of the proposed transaction, product plans, future growth, market opportunities, strategic initiatives, and industry positioning. Forward-looking statements relate to future events and future performance and reflect Adobe’s expectations regarding the ability to enhance its Creativity and Productivity business through the addition of Topaz Labs’ products and technology and other anticipated benefits of the proposed transaction. Each of the forward-looking statements we make in this press release involves risks, uncertainties and assumptions based on information available to us as of the date of this press release that could cause actual results to differ materially from these forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to: Adobe’s ability to integrate Topaz Labs’ technology into its Creativity and Productivity solutions; Adobe’s ability to realize cost savings, synergies and other potential benefits of the proposed transaction within the expected time frames or at all; costs or difficulties related to integration matters; the effectiveness of Topaz Labs’ technology; the risk of business disruptions from the proposed transaction; the ability of Adobe and Topaz Labs to close the proposed transaction; the possibility that the closing of the transaction may be delayed; any statements or assumptions underlying any of the foregoing; and those factors discussed in the section titled “Risk Factors” in Adobe’s most recently filed Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q. The risks described in this press release and in Adobe’s filings with the U.S. Securities and Exchange Commission (“SEC”) should be carefully reviewed. Undue reliance should not be placed on these forward-looking statements, which speak only as of the date of this press release. Adobe does not undertake any obligation, and does not intend, to update the forward-looking statements, except as required by law.
About Adobe
Adobe empowers everyone to create through industry-leading platforms and tools that unleash creativity, productivity and personalized customer experiences. For more information, visit www.adobe.com.
About Topaz Labs
Topaz Labs is a leader in AI-powered image and video enhancement. Its technology is used by millions of customers, including 20 of the world's 50 largest companies. Known for industry-leading products like Topaz Photo, Topaz Video, Topaz Gigapixel, Astra and Bloom, the company invests heavily in research and development, advancing the future of image and video quality.
Hertz Global Holdings, Inc. faces a critical setback as a discounted share offering and guidance cut reveal unsustainable reliance on capital markets. Despite solid demand, HTZ's turnaround is undermined by used-vehicle price softness, high depreciation, and a thin balance sheet with LT Debt/Capital near 92%. Valuation appears superficially attractive, but enterprise value metrics expose severe operational weakness relative to debt, with EV/EBITDA at 71x and negative net margins.
Key Takeaways American Express partnered with Mercantile and the ABA to launch a business card for lawyers.The card offers flexible payment options, business rewards and access to AmEx benefits.AXP's Agile Partner Platform helps expand industry-specific card programs on its network. American Express Company (AXP - Free Report) is expanding its commercial payments business through another targeted partnership. Together with Mercantile and the American Bar Association (“ABA”), AmEx has introduced the ABA American Express Business Card for solo practitioners and small law firms. Issued by Celtic Bank and operating on the American Express network, the card combines flexible payment options with business-focused rewards and access to AmEx's suite of business benefits.
The offering is built around the everyday needs of legal professionals. Cardholders can earn up to 5% cash back on eligible ABA purchases (capped at $2,000 annually) and 2% cash back on everyday spending, helping them better manage expenses while building business credit. Beyond the product itself, the partnership expands AmEx's presence in a specialized professional segment and further strengthens its commercial card business.
The collaboration also showcases AmEx's Agile Partner Platform (“APP”), which enables issuers and fintech partners to launch industry-specific card programs on the AmEx network. That approach allows AmEx to broaden its commercial payments franchise with tailored solutions while extending the reach of its payment network.
The partnership is unlikely to materially affect near-term earnings. Even so, it aligns well with AmEx's long-term strategy of growing its premium commercial card business. In the first quarter of 2026, net card fees increased 18% year over year, primarily driven by growth in premium card portfolios. By capturing specialized customer segments like the legal profession, AmEx continues to deepen customer relationships and strengthen its commercial payments franchise, an important driver of long-term growth.
How Are Competitors Faring?American Express faces intense competition in the commercial payments space from Mastercard Incorporated (MA - Free Report) and Visa Inc. (V - Free Report) , both of which are expanding their presence among small and midsized businesses through strategic partnerships and tailored payment solutions.
Mastercard is pursuing a similar strategy by working with partners to broaden its small-business card portfolio. Mastercard’s collaboration with Amazon and U.S. Bank introduced business credit cards that combine rewards, flexible financing options and expense management features for SMB customers.
Visa is also stepping up its focus on the SMB segment. Through initiatives such as Visa & Main and collaborations with fintech companies, Visa is broadening access to digital payment solutions, commercial card products and business financing tools for smaller enterprises.
AXP’s Price Performance, Valuation & EstimatesShares of AXP have risen 10% over the past year against the industry’s decline of 22.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, AXP trades at a forward price-to-earnings ratio of 18.18X, up from the industry average of 9.92X. AXP carries a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AXP’s 2026 earnings is pegged at $17.64 per share, implying a 14.69% jump from the year-ago period’s level.
Image Source: Zacks Investment Research
AXP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The semiconductor industry has spent the last decade racing toward a physical wall. Engineers have steadily shrunk transistors to pack more computing power onto ever-smaller chips, but that strategy is running out of room.
At today’s leading-edge process nodes, components are measured in just a handful of atoms. Heat, power leakage, and manufacturing complexity have become major obstacles. That is why IBM‘s (NYSE:IBM | IBM Price Prediction) latest could revolutionize the industry. The company just unveiled a sub-1 nanometer chip design that could keep Moore’s Law alive for years to come.
Yet despite the breakthrough, IBM is not getting back into the business of manufacturing chips.
IBM’s Business Isn’t Making Chips — It’s Inventing Them Many investors hear “new chip” and immediately think of companies like Taiwan Semiconductor Manufacturing (NYSE:TSM), Intel (NASDAQ:INTC), or Nvidia (NASDAQ:NVDA). IBM occupies a very different role.
After selling its commercial semiconductor manufacturing business to GlobalFoundries in 2014, IBM transformed itself into one of the world’s premier semiconductor research organizations. From its Albany, NY, research center, IBM develops next-generation chip architectures and licenses the underlying intellectual property to manufacturing partners.
That model allows IBM to avoid spending tens of billions of dollars building advanced fabrication plants while still influencing the direction of the industry.
The newly unveiled 0.7 nm “nanostack” design follows that playbook. IBM expects partners such as Samsung, Intel, and Japan’s Rapidus to commercialize the technology over roughly the next five years.
But to be clear, this is a research prototype, not a commercial product launch.
How IBM Broke Through Silicon’s Limits The most important detail is that “0.7 nm” is not a literal measurement of transistor size. Modern process nodes are largely marketing labels that represent advances in chip architecture and density.
Historically, chipmakers improved performance by shrinking transistors horizontally across a flat silicon surface. That approach has largely reached its practical limits because components are already only a few atoms wide. IBM’s answer is what it calls 3D Sequential Integration, or Nanostack.
Instead of placing transistors side by side, IBM stacks them vertically. The result is a fingernail-sized chip capable of housing approximately 100 billion transistors — roughly double the density of today’s leading 2 nm designs.
Here’s how IBM could change the game:
Metric Current Leading-Edge Chips IBM 0.7 nm Nanostack Transistor Density ~50 billion ~100 billion AI Processing Power Baseline Up to 7,000 TOPS Performance Gain Baseline Up to 50% higher Power Consumption Baseline Up to 70% lower Source: IBM Research announcement and technical briefing.
Why Investors Should Pay Attention This breakthrough matters because it extends the computing roadmap for artificial intelligence.
Training frontier AI models currently requires months of processing time and enormous energy consumption. IBM estimates a specialized AI accelerator built on its 0.7 nm architecture could deliver up to 7,000 trillion operations per second, or TOPS, roughly seven times current AI hardware capabilities.
The architecture also improves SRAM scaling by 40%, allowing processors to keep more data close to the computing cores. That reduces bottlenecks and speeds up AI inference tasks such as text generation, image creation, and reasoning.
Data centers may be the biggest beneficiaries. Operators could choose between:
Up to 50% more performance at existing power levels. Up to 70% lower power consumption while maintaining current performance. That flexibility could reshape data center economics as electricity becomes one of AI’s largest operating expenses.
Granted, commercialization remains years away. Manufacturing sub-1 nm chips will require the industry’s most advanced High-NA EUV lithography systems from ASML (NASDAQ:ASML), machinery that costs hundreds of millions of dollars per unit. That reality likely strengthens the competitive positions of Taiwan Semiconductor, Samsung, Intel, and government-backed ventures like Rapidus.
Key Takeaway In short, IBM’s announcement is not the return of a commercial chipmaker. It is the latest example of IBM doing what it has done for decades — inventing the future and letting others manufacture it.
The significance isn’t that IBM built a 0.7 nm prototype. It’s that the company demonstrated a path around the physical limits that threatened to slow artificial intelligence, cloud computing, and high-performance computing.
If IBM’s manufacturing partners can bring this technology to market around 2030, investors may look back on this announcement as the moment the semiconductor industry’s next decade of growth was secured.
On this episode of Stock Movers: - IBM (IBM) shares gained in premarket trading on Thursday after the technology giant unveiled the world's first sub-1 nanometer (nm) chip technology. - McCormick (MKC) is moving after it reported second-quarter profit that beat estimates, buoyed by higher prices and a tariff refund, and reaffirmed its full-year guidance.
Key Takeaways Merck secured EU approval for Keytruda plus Padcev in cisplatin-ineligible MIBC patients.The regimen is the first PD-1 inhibitor plus ADC combination to be approved in the EU for this use.Keytruda plus Padcev regimen is approved before & after surgery for patients ineligible for cisplatin therapy. Merck (MRK - Free Report) announced that the European Commission has approved its blockbuster PD-L1 inhibitor, Keytruda (pembrolizumab), and its subcutaneous formulation, Keytruda Qlex, each in combination with Pfizer’s (PFE - Free Report) antibody-drug conjugate ("ADC"), Padcev (enfortumab vedotin-ejfv), for treating certain patients with bladder cancer.
The regulatory body in Europe has now approved Keytruda in combination with Padcev as neoadjuvant treatment and then continued after radical cystectomy as adjuvant treatment in adult patients with resectable muscle-invasive bladder cancer (MIBC) who are ineligible for cisplatin-based chemotherapy.
Following the latest nod, the Keytruda+Padcev regimen became the first and only PD-1 inhibitor plus ADC combination to be available in the European Union for the given indication. The FDA approved the Keytruda+Padcev regimen for a similar indication in November 2025.
Last month, the EMA’s Committee for Medicinal Products for Human Use (“CHMP”) recommended approval of the combination of Keytruda plus Padcev for the given indication.
MRK’s Price PerformanceYear to date, shares of Merck have rallied 16.3% compared with the industry’s rise of 6.4%.
Image Source: Zacks Investment Research
The EU approval for Keytruda+Padcev regimen was based on data from the phase III KEYNOTE-905 study, conducted in collaboration with Pfizer and Astellas.
Data from the same showed that Keytruda plus Padcev, as perioperative treatment, led to statistically significant and clinically meaningful improvements across several endpoints, including event-free survival, overall survival and pathologic complete response versus surgery alone in the given patient population.
The latest approval of the Keytruda-Padcev regimen in Europe marks a significant advancement in the treatment of resectable MIBC, providing a new perioperative treatment option that has the potential to improve outcomes and extend survival in this underserved patient population.
The approval should further expand Keytruda’s presence in bladder cancer treatment.
MRK’s Keytruda & Padcev in Cisplatin-Eligible MIBCKeytruda in combination with Padcev is currently under review in the United States for the treatment of MIBC in patients who are eligible for cisplatin-based chemotherapy.
A decision from the FDA is expected on Aug. 17, 2026.
If approved, these regimens would be the first and only perioperative treatments for patients with MIBC, regardless of cisplatin eligibility, potentially establishing new standards of care.
Merck’s biggest revenue driver, Keytruda, is approved for different types of cancer indications. The drug generated $8.03 billion in sales in the first quarter of 2026, up 8% year over year.
The December 2023 acquisition of Seagen added Padcev to Pfizer’s oncology portfolio. The drug generated sales worth $591 million in the first quarter of 2026, up 39% on a year-over-year basis.
MRK’s Zacks Rank & Stocks to ConsiderMerck currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Immunocore (IMCR - Free Report) and Liquidia Corporation (LQDA - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Immunocore’s 2026 bottom line have improved from a loss of 88 cents per share to earnings of 6 cents. Over the same period, EPS estimates for 2027 have risen from 24 cents to 87 cents. IMCR stock has lost 13.6% year to date.
Immunocore’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 46.66%.
Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have risen from $1.50 to $2.97, while estimates for 2027 have increased from $2.91 to $4.81 during the same time. LQDA shares have surged 119% year to date.
Liquidia’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 54.40%.
Dan Deming talks joins today's Big 3 and highlights JPMorgan Chase (JPM) as shares touch new record highs. He sees Danaher (DHR) as a candidate for a continuing breakout, noting a similar pattern in Merck (MRK).
Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE: CVX), calls on drivers to gear up for summer with newly reformulated Chevron with Techron, help
This is a fair market value price provided by Massive. Learn more.
52-Week Range$351.42▼
$555.45Dividend Yield1.04%
P/E Ratio20.91
Price Target$560.86
Microsoft NASDAQ: MSFT investors just got an answer to the question hanging over the artificial intelligence (AI) infrastructure trade. Where does the power come from?
On June 22, Chevron NYSE: CVX and Microsoft signed a 20-year power purchase agreement. The deal funds Project Kilby, a 2.67-gigawatt natural gas plant in West Texas. The total cost for the campus is estimated at roughly $7 billion. Initial power is targeted for 2028.
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For Microsoft shareholders, this is the most consequential MSFT stock development since the OpenAI partnership. That may sound like hyperbole, but investors who have been paying attention to the issues surrounding the buildout of data centers will find the benefits from this deal hard to understate.
The Real AI Bottleneck Is Power AvailabilityWall Street spent two years obsessing over NVIDIA NASDAQ: NVDA chip allocation. The smarter constraint to watch was always the grid.
AI data centers need uninterrupted, dispatchable electricity at scale. Utility interconnect queues now stretch three to seven years. That timeline is incompatible with how fast Microsoft needs to deploy Azure AI capacity.
Project Kilby fixes that. Instead of waiting in line, Microsoft is building its own line.
The plant is co-located with the data center. There is no transmission build-out and no grid wait. At 2.67 gigawatts, the facility could power more than 530,000 Texas homes.
Why Microsoft Chose Natural Gas Over NuclearHyperscaler power strategies are diverging fast. The contrasts matter for MSFT shareholders.
Meta Platforms NASDAQ: META signed nuclear deals targeting up to 6.6 gigawatts by 2035. Most of those megawatts depend on small modular reactors. However, those reactors don’t yet exist at a commercial scale.
Amazon NASDAQ: AMZN signed an $18 billion, 17-year nuclear PPA with Talen Energy NASDAQ: TLN. However, full 1.92-gigawatt delivery won’t happen until 2032 and still faces regulatory hurdles. Nuclear energy is coming soon, but not today.
Microsoft chose natural gas that will come from the Permian Basin. The technology is proven, and the project comes with a firm timeline and domestic supply chain.
How Project Kilby Strengthens Azure EconomicsEnergy is the single largest operating cost for AI compute. A 20-year fixed PPA cuts tail risk on Azure AI gross margins. With this deal, Microsoft locks in price exposure through 2048. That kind of cost certainty is rare in a hyper-competitive cloud market.
For investors modeling long-dated free cash flow, this matters because it makes it more likely that Microsoft will generate a return on invested capital. It also gives Microsoft a margin advantage that competitors will struggle to match.
Microsoft is guiding to roughly $190 billion in fiscal 2026 capital expenditure (CapEx). Critics worry the spend is outrunning monetization. The Chevron deal pushes back on that narrative. Microsoft is not just buying GPUs. It is locking in the inputs that those GPUs need to run.
That’s a disciplined infrastructure build. The market has historically rewarded companies that take that approach with expanding multiples.
The deal also signals Microsoft will partner with Big Oil for execution speed. Sustainability purists may object. Enterprise customers focused on uptime will not.
Stocks That Benefit From Microsoft’s Power BuildoutThis deal has clear collateral winners that MSFT investors should track:
GE Vernova NYSE: GEV provides the majority of the turbines.
Caterpillar NYSE: CAT supplies additional capacity through its Solar Turbines subsidiary.
Texas Pacific Land NYSE: TPL contributed surface acreage and exclusive water rights.
Chevron itself gets a 20-year contracted revenue stream that diversifies away from oil price beta. The Permian natural gas demand thesis just got a long-dated anchor customer.
Key Risks Investors Should WatchOverall MarketRank™100th Percentile
Analyst RatingModerate Buy
Upside/Downside56.8% Upside
Short Interest LevelHealthy
Dividend StrengthStrong
News Sentiment0.92 Insider TradingSelling Shares
Proj. Earnings Growth15.04%
See Full Analysis
The deal is not yet closed. Chevron's Final Investment Decision is expected by the end of 2026. Construction risk, permitting delays, and Permian gas pricing all remain live.
The first power is two years out. Microsoft still needs interim solutions through 2028. Azure AI demand must also materialize at the rate management is forecasting.
Sustainability-focused investors may downgrade Microsoft's ESG profile. Natural gas emissions are a step backward from prior clean-energy commitments.
Finally, the AI CapEx cycle itself could cool before Project Kilby goes live. A demand pullback in 2027 would leave Microsoft holding contracted megawatts it does not need.
Securing the Foundation of AI GrowthThe bull case for Microsoft has rested on two pillars. Azure AI revenue growth and disciplined infrastructure execution.
This deal materially strengthens the second pillar. It also signals to the Street that Microsoft has identified the real bottleneck and has come up with a practical solution.
Competitors are betting on nuclear timelines that may slip. Microsoft is betting on gas turbines that ship on schedule. In a race measured in quarters, that’s the right trade.
For MSFT investors with a multi-year horizon, Project Kilby is the kind of unglamorous infrastructure decision that compounds. The headlines will move on by next week. The 2.67 gigawatts will be running for the next two decades.
Should You Invest $1,000 in Microsoft Right Now?Before you consider Microsoft, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Microsoft wasn't on the list.
While Microsoft currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
The AI boom is creating opportunities across semiconductors, cloud computing, enterprise software, infrastructure, cybersecurity, and automation.
Inside this report, you’ll find 10 companies positioned to benefit as artificial intelligence moves from hype to real-world deployment and becomes a core growth driver for corporate America.
Key Takeaways Phillips 66 may benefit as softer crude prices lower oil purchase costs for refining operations.PSX's midstream and chemicals businesses help insulate it from commodity price volatility.Nabors expects Lower 48 rig day rates to rise to the mid-$30,000 range through 2027. The oil-energy sector remains in the spotlight after the United States and Iran reached an interim deal last week. Media reports suggest that oil flows through the Strait of Hormuz are recovering, with shipping activity picking up again. Oil prices are declining significantly, altering the business landscape of energy companies.
The price of oil is still significantly higher than the shut-in prices of the wells in the United States that are not new but existing. According to a report from the Federal Reserve Bank of Dallas, the shut-in prices are lower than $50 per barrel in the major resources in the domestic market. Considering the backdrop, should investors bet on Phillips 66 (PSX - Free Report) and Nabors Industries Ltd. (NBR - Free Report) right away? Let’s delve deeper.
Image Source: Federal Reserve Bank of Dallas
2 Energy Stocks in the Spotlight: PSX & NBRWest Texas Intermediate (“WTI”) oil is currently trading just below $70 per barrel, according to data from Oilprice.com, significantly lower than the more than $100 per barrel reached in May this year. Phillips 66, currently carrying a Zacks Rank #2 (Buy), is likely to gain from the softer crude pricing environment. This is because PSX, a leading refining company, is now able to purchase oil at a lower cost, enabling the production of end products.
Although a leading refiner, PSX, unlike most of its refining peers, has diversified its business across midstream and chemicals. It is to be noted that midstream business, by its very definition, is resilient since it generates stable cash flows as the assets are being utilized for the long term, and is less vulnerable to commodity price volatility. Hence, having a diversified business model, PSX is insulated from the commodity price volatility to a great extent.
Nabors Industries is a leading energy company known for providing drilling technology and services. In the Lower 48, NBR has a large land-rig footprint and exposure in the international market. The current oil prices, which are much lower than the shut-in prices, are likely backing exploration and production activities, which are expected to have a positive impact on demand for NBR’s drilling technology and services. On its first-quarter 2026 earnings call, the #2 Ranked company mentioned that in the Lower 48, it is expecting its rig day rates to rise to the mid-$30,000 range through 2027 from the low-$30,000 range. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Caterpillar (CAT - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
Caterpillar is a member of the Industrial Products sector. This group includes 181 individual stocks and currently holds a Zacks Sector Rank of #8. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Caterpillar is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for CAT's full-year earnings has moved 8.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that CAT has returned about 73.6% since the start of the calendar year. Meanwhile, the Industrial Products sector has returned an average of 21% on a year-to-date basis. As we can see, Caterpillar is performing better than its sector in the calendar year.
Kaiser Aluminum (KALU - Free Report) is another Industrial Products stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 52.3%.
In Kaiser Aluminum's case, the consensus EPS estimate for the current year increased 18.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Caterpillar belongs to the Manufacturing - Construction and Mining industry, a group that includes 6 individual stocks and currently sits at #186 in the Zacks Industry Rank. On average, stocks in this group have gained 65.1% this year, meaning that CAT is performing better in terms of year-to-date returns.
In contrast, Kaiser Aluminum falls under the Metal Products - Procurement and Fabrication industry. Currently, this industry has 6 stocks and is ranked #52. Since the beginning of the year, the industry has moved +10.1%.
Going forward, investors interested in Industrial Products stocks should continue to pay close attention to Caterpillar and Kaiser Aluminum as they could maintain their solid performance.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Newmont Corporation (NEM - Free Report) Colorado-based Newmont Corporation is one of the world's largest producers of gold with several active mines in Nevada, Peru, Australia and Ghana. As of Dec 31, 2025, Newmont had attributable gold reserves of 118.2 million ounces and resources of 148.7 million ounces. Its attributable gold production for 2025 was around 5.89 million ounces.
NEM is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 9.49; value investors should take notice.
For fiscal 2026, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.90 to $9.91 per share. NEM boasts an average earnings surprise of +33.6%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, NEM should be on investors' short list.
Donations begin at Amber Cove in Puerto Plata, making the Dominican Republic the second Latin American country to join the initiative and bringing the program to 19 ports worldwide
Milestone builds on Carnival Corporation's long-standing commitment to the Dominican Republic through local partnerships and community engagement in Puerto Plata
, /PRNewswire/ -- Carnival Corporation (NYSE: CCL), the world's largest cruise company, today announced the expansion of its surplus meal donation program to the Dominican Republic, marking the second Latin American country to join the company's initiative to safely redirect prepared, unserved meals to local communities where its ships visit.
As part of Carnival Corporation's Less Left Over food waste reduction strategy, the donation of approximately 200 portions of prepared, unserved meals from Carnival Cruise Line's Mardi Gras was provided to the Archdiocese of Puerto Plata, Carnival Corporation's local program partner, for distribution to area organizations assisting families and the elderly. Supported by government collaboration, coordination with local partners ashore and Carnival Cruise Line's culinary teams, the effort is designed to move meals from ship to shore safely and consistently. The program is expected to expand quickly to all Carnival Cruise Line ships calling on Amber Cove.
With the addition of the Dominican Republic, the program has expanded to 19 ports since launching in 2017, helping address food insecurity in port communities where the company's ships visit. As of year-end 2025, the program has provided more than 320,000 meal portions to global communities since its inception, with plans to continue expanding the model into new markets.
"Bringing our surplus meal donation program to the Dominican Republic is an important part of expanding this work across Latin America," said Vicky Rey, vice president of government relations for Latin America, Carnival Corporation. "This work depends on clear processes, strong coordination with government and local partners, and a shared commitment to supporting the local community. Amber Cove's long-standing presence in Puerto Plata gives us a strong foundation to build on. We are grateful to the Archdiocese of Puerto Plata for serving as our local program partner, to our business partner Fabio Valenzuela, advisor to Rannik Group, and to government authorities for helping make this possible."
"We value Carnival Corporation's continued investment in Puerto Plata and its work with the Archdiocese of Puerto Plata to help ensure these meals reach organizations serving people in need," said Claritza Rochtte Peralta de Senior, governor of Puerto Plata. "This donation reflects the value of bringing the right partners together to support communities across the province."
The announcement builds on Carnival Corporation's long-standing role in Puerto Plata through Amber Cove, which opened in 2015 as an $85 million cruise destination that helped return cruise tourism to the region after more than three decades. Since then, Amber Cove has welcomed approximately seven million visitors, helped position Puerto Plata as a leading Caribbean cruise destination and created opportunities for local tour operators, artisans, vendors, transportation providers and small businesses.
The meal donation milestone adds to Carnival Corporation's broader work with local partners in Puerto Plata, including Maimón Basura Cero, a collaboration with the District Municipality of Maimón and Fundación Héroes del Medio Ambiente that is nearing completion of its third and final phase. The initiative is designed to strengthen local waste management by reducing solid waste sent from Maimón to the Puerto Plata landfill, encouraging separation at the source and supporting recycling and circular economy opportunities within the community.
As the leading cruise operator in the Dominican Republic, Carnival Corporation's eight global cruise lines will visit six Dominican ports in 2026, bringing more than 1.3 million guests and representing 50% of the country's cruise market share.
About Carnival Corporation
Carnival Corporation is the largest global cruise company and among the largest leisure travel companies, with a portfolio of world-class cruise lines – AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises, and Seabourn. Carnival Corporation Ltd. trades under the ticker symbol CCL on the NYSE and is a member of the S&P 500.
For more information, please visit www.carnivalcorp.com, www.aida.de, www.carnival.com, www.costacruises.com, www.cunard.com, www.hollandamerica.com, www.pocruises.com, www.princess.com, and www.seabourn.com.
To learn more about Carnival Corporation's purpose and our commitment to sustainability, go to Our Impact.
The stock for Marc Benioff's Salesforce (CRM 1.64%) has sunk to a three-year low, but the downward slide might be more about investor fears and sentiment than actual fundamentals. For this reason, investors may want to consider buying the stock.
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Last quarter, Salesforce revenue and earnings topped expectations. The company's free cash flow was $6.6 billion. These aren't exactly red flag warnings. So what seems to be the problem?
There are generally two main concerns holding investors back. The first is the strategy around monetizing AI. Salesforce's Agentforce platform is supposed to help companies via AI agents to handle marketing, operations, and sales, and thus far, it seems to be working. However, there's a real fear of cannibalization happening. The same AI agents helping enterprise clients could replace the seat-based subscriptions that Salesforce relies on.
Image source: The Motley Fool.
The second problem is with Salesforce's acquisition strategy. The company is acquiring Fin, a customer service platform, for $3.6 billion. On the bright side, Fin brings about 30,000 business customers. On the other hand, there are concerns that Salesforce may need to buy growth rather than pursue it organically.
The company's growth has indeed slowed, but Salesforce's margins remain healthy, and the stock is currently attractively priced. Perhaps the fear of AI cannibalization is justified, but AI revenue could outpace the seats it eliminates. Time will tell.
Overall, Salesforce is still a powerhouse of a business, and I'm cautiously optimistic that Benioff's behemoth can figure it out. A three-year low in stock prices looks like an opportunistic time to test the waters. As of market close on June 23, shares of Salesforce closed slightly above $153.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Salesforce. The Motley Fool has a disclosure policy.
I keep hitting the buy button on Salesforce (NYSE:CRM | CRM Price Prediction), and I am not sorry about it. The stock sits at $152.76, down 42.03% year to date and 43.18% over the past year, while the company itself just delivered the strongest quarter in its history. That is the gap I am buying.
Wall Street panic-dumped a business that grew Q1 FY27 revenue 13.27% YoY to $11.13 billion and posted EPS of $3.88 against a $3.13 consensus, the fifth consecutive beat. Meanwhile the Invesco QQQ Trust (NASDAQ:QQQ) is only down 2.58% since the May 27 earnings release while CRM dropped 13.72% over the same window. The discount is the story.
The thesis I cannot shake Salesforce is becoming the operating system for what Marc Benioff calls the “Agentic Enterprise.” Agentforce ARR hit $1.2 billion, up 205% YoY, and combined with Data 360 the AI stack runs at roughly $3.4 billion in ARR, up more than 200% YoY. The platform delivered 3.8 billion Agentic Work Units in a single quarter and processed 28.6 trillion tokens. That is real monetization, not a slide deck.
Salesforce also signed a $3.6 billion cash agreement to acquire Fin (formerly Intercom), folding an autonomous customer support agent directly into the Agentforce suite that is already scaling toward $800 million in annualized run rate. The Informatica deal, which contributed $444 million to Q1 revenue, gives the agents clean enterprise data to act on. Pieces are clicking together.
The data that keeps me adding First, valuation. CRM trades at a P/E of 17 with a free cash flow yield of 11.51%. A retail post on r/stockmarket framing the selloff as “completely detached from fundamentals” at 11x forward earnings has pulled 791 upvotes. When retail and fundamentals agree on the math, I pay attention.
Second, the capital return is aggressive. Management deployed a $25 billion accelerated share repurchase, took delivery of 103 million shares upfront, and shrank the count from 970 million to 819 million in a year. The board sits on a $50 billion total buyback authorization while paying a $0.42 quarterly dividend.
Third, the forward book. Total RPO of $72.4 billion and cRPO of $33.6 billion, up 14% YoY, are contractually obligated revenue. FY27 guidance was raised to $45.9 billion to $46.2 billion with non-GAAP EPS of $14.06 to $14.12, and the company is targeting $63 billion in revenue by FY30.
The risk I refuse to dismiss Noncurrent debt jumped from $10.4 billion to $39.3 billion to fund that buyback. Higher interest expense is a real headwind, and prediction markets currently price Databricks at 63.5% probability of a higher valuation than CRM by June 30. Interest coverage of 27.52x and net debt to EBITDA of 0.78 tell me the balance sheet can carry it, and $6.56 billion of quarterly free cash flow services the new load without choking growth investment.
Why my finger stays on the button I am buying a 77.68% gross margin software franchise with 90% of the Forbes Top 50 AI companies as customers, accelerating AI revenue, a shrinking share count, and a price that reflects exhaustion rather than evidence. When the market sells the business that owns the rails of agentic enterprise software, I keep loading up on repeat.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Hormel Foods (HRL - Free Report) Hormel Foods Corporation is a manufacturer and marketer of various meat, nuts and other food products in the U.S. and international markets. Earlier, the company used to operate through five segments, which were later consolidated into four. Hormel Foods’ portfolio includes brands such as Planters, Skippy, SPAM, Applegate, Wholly, Hormel Black Label, Fontanini, Bacon 1 and Jennie-O, along with 30 other brands. The company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats.
HRL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Consumer Staples stock. HRL has a Momentum Style Score of B, and shares are up 21.9% over the past four weeks.
Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.03 to $1.46 per share. HRL boasts an average earnings surprise of +3.2%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, HRL should be on investors' short list.
Alibaba Group Holding (BABA) fell to a 16-month low in Hong Kong on Thursday after Anthropic accused the Chinese company of improperly accessing its Claude AI m
BELLEVUE, Wash.--(BUSINESS WIRE)--T-Mobile US, Inc. (NASDAQ: TMUS) looks forward to discussing second quarter 2026 financial and operational results on Thursday, July 23, 2026, at 7:30 a.m. Eastern Time (ET). The call will be accessible via dial-in with pre-registration as well as a webcast link on the Company's Investor Relations website at https://investor.t-mobile.com. The earnings release, Investor Factbook, and other related materials will be available at approximately 6:30 a.m. ET on Thur.
Key Takeaways Oracle ended FY26 with a record RPO of $638B, driven by AI cloud infrastructure demand.Cloud Infrastructure revenues surged 93% in Q4, while total cloud revenues grew 47% YoY.About 98% of Oracle's AI data center capacity is contracted, with utilization nearing full capacity. Oracle’s (ORCL - Free Report) rapidly expanding contract backlog is enhancing visibility into its long-term revenue growth. The company ended fiscal 2026 with a record $638 billion in Remaining Performance Obligations (RPO), including an $85 billion sequential increase, reflecting strong customer demand for its AI cloud infrastructure and enterprise applications. Much of the backlog stems from large AI infrastructure contracts, where customers have either prepaid for GPUs or supplied their own hardware, reducing Oracle's capital requirements while securing future business.
Oracle is already converting these commitments into revenues. Fiscal fourth-quarter Cloud Infrastructure revenues surged 93% year over year, while total cloud revenues grew 47%, highlighting strong execution against its expanding order book. The company also reported that approximately 98% of its AI data center capacity is already contracted, with utilization nearing full capacity, underscoring sustained enterprise demand for Oracle Cloud Infrastructure.
To support this growing backlog, Oracle continues to expand its AI data center footprint, adding significant new capacity to fulfill contracted customer demand while leveraging customer prepayments to fund infrastructure investments. This capital-efficient approach enables the company to scale rapidly without placing excessive pressure on its balance sheet.
Management has maintained its fiscal 2027 revenue target of $90 billion and expects continued robust cloud revenue growth, supported by its record contract pipeline. As Oracle accelerates customers' migration to cloud-based services and expands AI infrastructure, its growing backlog provides greater revenue visibility, strengthens recurring revenue streams and reduces uncertainty around future growth, reinforcing the company's long-term cloud growth strategy.
How Oracle's Growing Backlog Measures Up to Cloud RivalsSnowflake (SNOW - Free Report) competes with Oracle through rapidly expanding RPO, driven by AI adoption and stronger enterprise bookings. SNOW emphasizes governed AI, consumption-led growth and disciplined renewals to strengthen future revenue visibility. While Oracle benefits from larger multiyear cloud infrastructure contracts, SNOW excels in AI-enabled customer expansion and agile data platform adoption, supporting sustained backlog growth.
Microsoft (MSFT - Free Report) challenges Oracle with one of the industry's largest commercial RPO bases, backed by Azure, Microsoft 365 and AI services. MSFT combines long-duration contracts with usage-based cloud monetization, reinforcing revenue visibility. Although Oracle is gaining through infrastructure backlog, MSFT benefits from broader enterprise reach, stronger cross-selling and diversified recurring revenues, supported by expanding commercial commitments.
ORCL’s Price Performance, Valuation & EstimatesShares of Oracle have declined 19.2% in the year-to-date period, underperforming the Zacks Computer and Technology sector’s growth of 15%. However, the Zacks Computer - Software industry has fallen 23.6% during the same period.
ORCL’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, ORCL stock is currently trading at a forward 12-month P/S ratio of 4.97X, which is lower than the industry average of 5.99X. Oracle has a Value Score of C.
ORCL’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ORCL’s fiscal 2027 earnings is pegged at $8.03 per share, increased by 4 cents over the past 30 days. The earnings estimate suggests 5.24% growth over the figure reported in fiscal 2026.
Image Source: Zacks Investment Research
ORCL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
All 32 banks in the Fed's "stress test" passed, which Stephen Biggar considers a green light for financial strength heading into the upcoming earnings season. He adds to his perspective by outlining profit expectations for companies like JPMorgan Chase (JPM), Wells Fargo (WFC), and Bank of America (BAC).
ATLANTA, June 25, 2026 (GLOBE NEWSWIRE) -- OneTrust, the AI-Ready Governance Platform™, today announced that it has been recognized by Snowflake, the AI Data Cloud company, as a Leader in the Privacy and Consent category in The Modern Marketing Data Stack 2026: Governing the Agentic Enterprise. This recognition marks the fourth consecutive year OneTrust has been named a Leader in the report.
Now in its fifth year, Snowflake’s Modern Marketing Data Stack report reflects a major shift in how marketing organizations operate—from fragmented tools toward AI-driven, agentic systems built on governed data foundations. This edition draws on insights from more than 11,500 Snowflake customers and ecosystem partners across 13 categories, highlighting how organizations are bringing industry-leading applications directly to their data to drive faster execution and proven business outcomes across the marketing lifecycle, while addressing the growing demands of data gravity, privacy and trust.
"Governance is not separate from — or slowing down — innovation. It is what makes scalable, reliable and accountable AI-driven action possible." - The Modern Marketing Data Stack, 5th Edition, Snowflake
The Modern Marketing Data Stack 2026 Names OneTrust a Leader
Powering around two billion consent transactions a day, OneTrust provides the privacy, consent, and governance layer that helps marketers use customer data responsibly at scale. As AI increases demand for high-quality first-party data and third-party signals continue to decline, marketing teams use OneTrust to capture consent across digital touchpoints and apply those choices wherever customer data is used, enabling more personalized engagement while supporting compliance and responsible AI adoption.
“Governance has long been foundational to the modern marketing stack, and it is even more important as teams bring AI and agents deeper into their workflows,” said Ojas Rege, SVP of Emerging Products and Technologies at OneTrust. “It is what helps companies understand whether AI can be trusted to scale throughout the business and deliver value. OneTrust’s recognition as a Privacy and Consent Leader highlights how marketing teams view governance as essential to innovating with AI.”
“Marketing teams are under pressure to move faster with data, but speed only creates value when it is grounded in governance,” said Denise Persson, Chief Marketing Officer at Snowflake. “Together, OneTrust and Snowflake help enterprises turn trusted data into stronger customer experiences, more effective engagement, and durable business impact.”
How OneTrust Consent & Preferences Integrates with Snowflake
The OneTrust Consent Management Snowflake Native App aligns customer consent policies with native data security controls in the Snowflake AI Data Cloud, enabling downstream marketing and data teams to work with permissioned data that reflects real-time consumer preferences. By embedding consent and governance controls more directly into data workflows, organizations can streamline compliance and improve access to governed data for AI and personalization use cases.
As AI drives businesses to use data faster and more collaboratively, this functionality now extends to Snowflake Data Clean Rooms. The integration applies OneTrust consent signals to the data in Snowflake Data Clean Rooms to make consent enforceable across queries, analytics, and activation use cases. This empowers companies to operationalize consent within Snowflake, supporting fast and responsible data collaboration across brands, publishers, and partners.
Resources
Watch a demo: OneTrust Consent & PreferencesAttend the webinar: OneTrust Using OneTrust: Managing Consent and PreferencesLearn more about The Modern Marketing Data Stack 2027Watch the video: Protecting Customer Data In A Collaborative, Data-Sharing World About OneTrust
OneTrust, the AI-Ready Governance Platform™, enables innovation through the responsible use of data and AI. Trusted by thousands of companies, including over half of the Fortune 500, we help businesses govern well and move fast, turning responsible data use into a catalyst for growth. To learn more, follow OneTrust on LinkedIn or visit www.onetrust.com.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/fa110d5a-78f5-4d0a-bca0-ff8adf2dabf5
OneTrust Recognized as a Leader in Snowflake’s Modern Marketing Data Stack Report OneTrust privacy and consent solutions enable marketers to use customer data responsibly at scale
SAN DIEGO, June 25, 2026 (GLOBE NEWSWIRE) -- Johnson Fistel, PLLP is investigating Hyliion Holdings Corp. (NYSE American: HYLN) on behalf of investors who suffered losses and whether those losses may be recoverable under federal securities laws.
What Should Hyliion Investors Do?
If you purchased Hyliion securities and suffered losses on your investment, you are encouraged to contact Johnson Fistel to learn more about the investigation.
To join the investigation click here.
For more information, contact Jim Baker at [email protected] or (619) 814-4471.
There is no cost or obligation to you.
Why Is Johnson Fistel Investigating Hyliion?
On June 23, 2026, Pelican Way Research published a short report concerning Hyliion titled “Hyliion: A Glorified Science Project Who Has Continuously Failed To Meet Expectations And Is Now Throwing Around A Meaningless Deal.” The report stated that Hyliion’s stock had risen significantly following the Company’s announcement of a non-binding LOI with VFG Holdings for up to 250 KARNO Cores, representing approximately $133 million in potential revenue.
Pelican Way Research alleged that the VFG LOI accounted for roughly one-third of Hyliion’s reported $400 million-plus pipeline and questioned whether the LOI provided meaningful commercial validation. The report further alleged that VFG, which Pelican Way identified as VFG Tech Holdings, LLC, was incorporated in January 2026, appeared to have only four LinkedIn employees, had a minimal website, and lacked evidence of funding or operating substance sufficient to support an order of that size.
In light of these allegations, Johnson Fistel is investigating whether Hyliion Holdings complied with federal securities laws. If you suffered losses, or are a long-term holder of Hyliion stock, contact Johnson Fistel.
About Johnson Fistel, PLLP | Securities Fraud & Investor Rights
Johnson Fistel, PLLP is a nationally recognized shareholder rights law firm with offices in California, New York, Georgia, Idaho, and Colorado. The firm represents individual and institutional investors in shareholder litigation involving securities fraud, breaches of fiduciary duties, and other violations of state and federal law.
Johnson Fistel has been recognized as one of the Top 10 Plaintiff Law Firms by ISS Securities Class Action Services. In 2024, the firm recovered approximately $90,725,000 for investors.
Attorney advertising. Past results do not guarantee future outcomes. Services may be performed by attorneys in any of our offices. This press release may be considered a promotional communication. The attorney responsible for this communication is Frank J. Johnson.
Contact:
Johnson Fistel, PLLP
501 W. Broadway, Suite 800
San Diego, CA 92101
James Baker, Investor Relations – or – Frank J. Johnson, Esq.
(619) 814-4471 [email protected] | [email protected]
USB.PR.H, a fixed-then-floating preferred from U.S. Bancorp, stands out amid stagflationary risks and rising rates. The floating rate structure of USB.PR.H offers increasing payouts as SOFR rises, directly benefiting from higher interest rates. USB.PR.H trades at a nearly 25% discount to par, with minimal call risk and a strong payment record.
Key Takeaways USB passed the Fed's 2026 stress test, while its SCB will remain unchanged at 2.6% until Oct. 1, 2027.U.S. Bancorp intends to raise its quarterly dividend by 3.8% to 54 cents per share.USB's CET1 ratio of 10.8% exceeded the 7.1% minimum, supporting capital returns and growth. Following the release of the Federal Reserve's 2026 stress test, U.S. Bancorp (USB - Free Report) outlined its planned capital actions and reaffirmed its strong capital position. According to the Fed’s stress test results released yesterday, USB is among the 32 U.S. banks that successfully passed the test.
Based on the 2026 stress test results, USB's stress capital buffer (SCB) would have been subject to the regulatory floor of 2.5%. However, as announced by the Fed in February 2026, stress test-related capital buffer requirements will remain unchanged through 2027 while the agency reviews public feedback on its supervisory models. As such, the company's SCB will remain unchanged at 2.6% until Oct. 1, 2027.
Including the Basel III minimum common equity Tier 1 (CET1) capital requirement of 4.5%, USB is also required to maintain a CET1 ratio of at least 7.1%. As of March 31, 2026, the company's CET1 ratio was 10.8%, significantly above the required minimum level. This underlines the capital strength of USB and enables the bank to undertake organic growth initiatives and continue capital payouts.
As part of its planned capital actions, U.S. Bancorp intends to raise its quarterly common stock dividend by 3.8% to 54 cents per share from 52 cents, subject to board approval. The higher dividend is expected to become effective in the third quarter of 2026.
Based on yesterday's closing price of $60.10, its current dividend yield stands at 3.5% compared with the industry's 2.7%. Over the past five years, the company has increased its dividend five times.
Dividend Yield
Image Source: Zacks Investment Research
Apart from dividends, USB continues to return capital through share repurchases. In September 2024, the board authorized a share repurchase program of up to $5 billion of common stock. As of March 31, 2026, nearly $4.1 billion remained available under the authorization.
U.S. Bancorp also maintains a decent liquidity position. As of March 31, 2026, cash and due from banks were $48.4 billion, while short-term borrowings and long-term debt totaled $17.9 billion and $61.4 billion, respectively.
Driven by strong capital levels, earnings strength and solid liquidity, USB is expected to sustain its capital distribution activities and continue enhancing shareholder value. The planned dividend increase and significant remaining share repurchase capacity reflect management's confidence in the company's financial position and long-term growth prospects.
Other Firms Set to Raise Dividends After 2026 Stress TestSome other participants from the stress test that are enhancing capital distribution plans following the results are Wells Fargo (WFC - Free Report) and Goldman Sachs (GS - Free Report) .
Wells Fargo intends to raise its third-quarter 2026 common stock dividend by 11% to 50 cents per share from 45 cents, subject to board approval. Goldman Sachs plans to increase its quarterly common dividend by 11% to $5 per share from $4.50 beginning July 1, 2026, subject to approval at its scheduled third-quarter board meeting.
USB’s Price Performance and Zacks RankOver the past six months, shares of US Bancorp have rallied 9.3% compared with the industry’s growth of 12.5%.
Price Performance
Image Source: Zacks Investment Research
Currently, the company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Law Offices of Howard G. Smith announces an investigation on behalf of First Solar, Inc. (âFirst Solarâ or the âCompanyâ) (NASDAQ: [url="]FSLR[/url]) in
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: First Solar (FSLR - Free Report) Headquartered in Tempe, AZ, First Solar, Inc. is the world’s largest thin-film PV solar module manufacturer and the largest PV solar module manufacturer in the Western Hemisphere. The company is a leading global provider of comprehensive photovoltaic (PV) solar energy solutions and specializes in designing, manufacturing, and selling solar electric power modules using a proprietary thin-film semiconductor technology. The company sells its products to project developers, system integrators and renewable energy project operators primarily in Europe and Germany in particular. First Solar also engages in designing and deploying commercial solar projects for utilities. The company also develops and sells PV solar power systems that primarily use the modules it manufactures. Additionally, it provides operations and maintenance (“O&M”) services to system owners.
FSLR is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. FSLR has a Growth Style Score of A, forecasting year-over-year earnings growth of 23.9% for the current fiscal year.
For fiscal 2026, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.24 to $17.61 per share. FSLR boasts an average earnings surprise of +5.4%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, FSLR should be on investors' short list.
LOS ANGELES, June 25, 2026 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises First Solar, Inc., (“First Solar” or the "Company") (NASDAQ: FSLR) investors of a class action on behalf of investors that bought securities between February 26, 2025 and February 24, 2026, inclusive (the “Class Period”). First Solar investors have until August 24, 2026 to file a lead plaintiff motion.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: [email protected], to discuss their legal rights, or join the case via https://portnoylaw.com/first-solar-inc. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
According to the Complaint, the Company made false and misleading statements to the market. First Solar misled investors about its ability to mitigate the impact of tariffs on its operations. The Company overstated its ability to shift operations to the United States from Malaysia and Vietnam. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about First Solar, investors suffered damages.
The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA, NY and TX Bar [email protected]
310-692-8883
www.portnoylaw.com
LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay Wolke & Rotter LLP, a leading national shareholder rights law firm, today announced that it has commenced an investigation on behalf of First Solar, Inc. (“First Solar” or the “Company”) (NASDAQ: FSLR) investors concerning the Company's possible violations of the federal securities laws.IF YOU ARE AN INVESTOR WHO LOST MONEY ON FIRST SOLAR, INC. (FSLR), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS.What Happened?On Ja.
New York, New York--(Newsfile Corp. - June 25, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against First Solar, Inc. (NASDAQ: FSLR) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired First Solar securities between February 26, 2025 and February 24, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/FSLR.
First Solar Case Details
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, the Complaint alleges that:
Defendants had overstated First Solar's capacity to manage the impact of U.S. tariff policy on the Company's business Defendants understated the extent to which its responses to U.S. tariff policy, including the intentional underutilization of production facilities in Malaysia and Vietnam, and attempted relocation of production to the U.S., were likely to negatively impact First Solar's projected performance in the 2026 fiscal year; as a result, Defendants' public statements were materially false and misleading at all relevant times.What's Next for First Solar Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/FSLR, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in First Solar you have until August 24, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to First Solar Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for First Solar Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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Prior results do not guarantee similar outcomes.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/302691
Source: Bronstein, Gewirtz & Grossman, LLC
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Key Takeaways Gilead secured FDA approval to expand Trodelvy into first-line metastatic TNBC treatment.Trodelvy regimens cut progression or death risk by up to 38% in ASCENT-03 and ASCENT-04.Trodelvy gains broader use as Gilead advances oncology growth beyond its HIV franchise. Gilead Sciences, Inc. (GILD - Free Report) obtained approval FDA approved for the label expansion of breast cancer drug Trodelvy (sacituzumab govitecan-hziy), a first-in-class Trop-2-directed antibody-drug conjugate (ADC).
The regulatory body approved the drug for the first-line treatment of adult patients with unresectable locally advanced or metastatic triple-negative breast cancer (mTNBC).
Consequently, Trodelvy is now approved in first-line mTNBC, either as a single agent for patients who are not candidates for PD-(L)1 inhibitor-based therapy or in combination with Merck’s (MRK - Free Report) Keytruda (pembrolizumab) or Keytruda Qlex (subcutaneous injection of Keytruda) for patients whose tumors express PD-L1 (CPS ≥10) as determined by an FDA-authorized test.
Trodelvy is already approved in several countries for second-line or later metastatic TNBC and in more than 50 countries for certain patients with pre-treated HR+/HER2- metastatic breast cancer (mBC).
The latest FDA approval comes shortly after the European Commission expanded Trodelvy’s label for the same indication.
Gilead’s shares have gained 2% year to date compared with the industry's growth of 0.9%.
Image Source: Zacks Investment Research
More on GILD’s Trodelvy Label Expansion The FDA’s approval was based on highly statistically significant and clinically meaningful progression-free survival (PFS) results from the late-stage ASCENT-03 and ASCENT-04/KEYNOTE-D19 studies. Data from these studies showed that Trodelvy-based regimens significantly lowered the risk of disease progression or death.
In ASCENT-03, Trodelvy monotherapy reduced this risk by 38% compared with chemotherapy in patients with PD-L1–ineligible disease, while in ASCENT-04, Trodelvy combined with Keytruda cut the risk by 35% versus Keytruda plus chemotherapy in patients with PD-L1+ disease.
Trodelvy-based regimens also demonstrated substantially more durable responses across both trials. Median duration of response reached 12.2 months with Trodelvy versus 7.2 months with chemotherapy in ASCENT-03, and 16.5 months with Trodelvy plus Keytruda versus 9.2 months with Keytruda plus chemotherapy in ASCENT-04.
The National Comprehensive Cancer Network (NCCN) recommends Trodelvy with or without Keytruda as a category 1 preferred first-line treatment option for people with mTNBC across PD-L1 status in the NCCN Guidelines, based on findings from the ASCENT-03 and ASCENT-04 studies.
Trodelvy also holds Category 1 recommendations for second-line treatment of mTNBC and for patients with previously treated HR-positive/HER2-negative mBC.
Trodelvy continues to gain market share in the second-line setting. Approval in additional indications will further boost sales.
It is being studied in several ongoing phase III clinical studies across multiple tumor types characterized by high Trop-2 expression. Studies are underway in lung and gynecologic cancers, where earlier proof-of-concept trials have already demonstrated encouraging clinical activity.
However, earlier this month, Merck and Gilead Sciences announced the discontinuation of the phase III KEYNOTE-D46/EVOKE-03 study evaluating Trodelvy in combination with Keytruda as a first-line treatment for patients with metastatic non-small cell lung cancer (NSCLC) whose tumors express high levels of PD-L1 (TPS ≥50%).
The open-label phase III study sponsored by Merck evaluated Trodelvy in combination with Keytruda versus Keytruda alone in this NSCLC patient population. The decision follows a recommendation from the external Data Monitoring Committee after reviewing the pre-specified final PFS analysis and an interim overall survival (OS) analysis.
While the combination demonstrated a numerical improvement in PFS compared with Keytruda alone, the result did not achieve statistical significance. The committee concluded that the likelihood of demonstrating a statistically significant OS benefit at the final analysis was low.
GILD’s Efforts to Diversify PortfolioGilead’s robust HIV franchise continues to maintain momentum, driven by the solid performance of Biktarvy and Descovy, and incremental contributions from Yeztugo.
Simultaneously, GILD is looking to strengthen its oncology franchise.
Gilead’s recent aggressive dealmaking strategy, including the acquisition of Arcellx and Tubulis, highlights the company’s commitment to diversifying beyond its core HIV franchise into higher-growth oncology and immunology markets.
GILD’s Zacks Rank and Stocks to ConsiderGilead currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech sector are Liquidia Corporation (LQDA - Free Report) and Immunocore (IMCR - Free Report) , both currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have risen from $1.50 to $2.97, while those for 2027 have increased from $2.91 to $4.81. LQDA’s shares have surged 119% year to date.
Liquidia’s earnings beat estimates in three of the trailing four quarters and missed in one, with the average surprise being 54.40%.
Over the past 60 days, 2026 loss per share estimates for Immunocore have narrowed from 97 cents to 16 cents, while 2027 estimates have improved from a loss of 39 cents to earnings of 11 cents per share.
Immunocore’s earnings beat estimates in three of the trailing four quarters and missed in one, with the average surprise being 46.66%.
SummaryMolson Coors Beverage Company is rated Strong Buy, trading at deep discounts to peers despite solid cash flow and capital returns.TAP’s operational efficiency improved, with gross margin rising to 38.2% and operating income up nearly 39%, even as sales growth remained modest.Share buybacks and dividends continue, but aggressive repurchases amid negative free cash flow and a $513.9M cash balance drop warrant close monitoring.Valuation multiples—P/E 8.35x, EV/EBITDA 6.54x, Price/Cash Flow 3.97x—signal excessive market pessimism; stabilization in volumes or margins could unlock upside.nata_vkusidey/iStock via Getty Images
Today, we will discuss Molson Coors Beverage Company (TAP), one of the global giants in the beer and beverage industry, with a significant presence in North America, Europe, the Middle East, Africa, and Asia-Pacific. The company
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Palantir Technologies Inc. (PLTR - Free Report) Denver-based Palantir Technologies was founded in 2003. The company builds and deploys software platforms for the intelligence community to help in counterterrorism investigations and operations across the United States and internationally.
PLTR is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. PLTR has a Growth Style Score of A, forecasting year-over-year earnings growth of 98.7% for the current fiscal year.
11 analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.15 to $1.49 per share. PLTR also boasts an average earnings surprise of +15.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, PLTR should be on investors' short list.
Palantir (NASDAQ:PLTR | PLTR Price Prediction) has been one of 2026’s most punished AI winners, sliding from a December peak near $183.25 to roughly $113.50. After running the numbers, I think that pullback has overshot the fundamentals.
Our 24/7 Wall St. price target for Palantir is $150.02 over the next 12 months, implying 32.17% upside from current levels. We rate shares a buy with 90% confidence, the highest tier our model assigns.
Metric Value Current Price $113.50 24/7 Wall St. Price Target $150.02 Upside 32.17% Recommendation BUY Confidence Level 90% A Brutal Six Months Despite Record Numbers Palantir is down 36.15% year to date, 17.08% over the past month, and 13.11% over the past week, with shares now sitting just above the 52-week low of $116.18 and roughly 12% below the $207.52 52-week high.
The drawdown coincided with Michael Burry’s widely shared June note calling PLTR “a sand castle supported only by AI applications narrative,” which dragged Reddit sentiment to 22 in early June.
That bearish narrative collides with the fundamentals. Q1 2026 revenue hit $1.63 billion, up 84.7% year over year, the fastest growth in company history. Adjusted EPS of $0.33 beat consensus by 18.07%, the eighth straight beat. U.S. commercial revenue grew 133%, free cash flow reached $925 million, and management raised FY2026 revenue guidance to $7.65 to $7.66 billion.
The Bull Case The bull case rests on AIP-driven commercial adoption that CEO Alex Karp argues is supply-constrained. On the Q1 call he said, “Our biggest problem currently in the U.S. is that we just cannot meet demand.”
U.S. commercial remaining deal value reached $4.92 billion, up 112%, and net dollar retention hit 150%. Government tailwinds include the $300 million USDA contract and Maven usage 4x over the past twelve months.
Of 31 analysts, 19 rate shares Buy or Strong Buy with a consensus target of $182.75. Our bull-case scenario carries Palantir to $197.98, a 74.43% return, if FY2026 revenue lands above guidance and operating margins hold near 46%.
What Could Go Wrong The bear case starts with valuation. Palantir trades at 131x trailing earnings and 79x forward, leaving zero margin for an execution miss. Insider activity raises another flag: Director Alexander Moore sold 16,000 shares in each of April, May, and June.
It should be noted, however, that the May 20 executive activity from Karp, Cohen, and Sankar represented a Class A to Class B equity restructuring. Prediction-market traders are also cautious, with Polymarket assigning 50.3% probability that PLTR finishes June at $108. Our bear-case target is $136.38, still 20.16% above today.
Palantir Price Prediction 2026 to 2030 My 24/7 Wall St. price target of $150.02 reflects a stock that has been punished faster than its fundamentals have deteriorated. With a Rule of 40 score of 145%, accelerating U.S. growth, and raised guidance, I think the risk/reward is favorable.
The setup looks favorable for investors who can stomach a beta of 1.515 and believe AIP demand stays supply-constrained. The thesis weakens for those expecting federal budget continuing-resolution drag or a broader AI multiple reset.
Looking further out, here is where our model projects PLTR could trade, assuming current execution holds.
Year 24/7 Wall St. Price Target 2026 $150.02 2030 $251.33 These projections assume Palantir compounds revenue near management’s trajectory and holds margin gains. Material upside or downside could come from federal AI procurement cycles or any compression in software multiples.
Shares of Palantir (NASDAQ:PLTR | PLTR Price Prediction) stock are down 6% in Thursday morning trading, changing hands near $106.50 after a prior close of $113.50. The move drops PLTR stock to its lowest level in over a year, deepening a string of fresh 52-week lows.
Zoom out and the picture is rougher, as Palantir stock is now down roughly 40% in 2026. June is shaping up to be Palantir’s worst month on record.
With PLTR stock now hovering just above $100, the question everyone is asking is whether the next leg drags Palantir shares through that round number. It’s a genuine open question rather than a confident forecast.
No Single Fresh Catalyst, Just a Continuing Derating There’s no fresh headline driving today’s specific drop in Palantir stock. Instead, PLTR is caught in a broader software and AI selloff that some traders have nicknamed the “SaaSpocalypse,” a repricing of richly valued software names amid fears that AI agents could erode traditional enterprise subscription models. Interest-rate pressure on the software group is adding to the squeeze.
The valuation sits at the center of the Palantir story. Recent coverage cited a trailing P/E ratio near 144x, and other readings put Palantir’s P/E ratio at 160x with a price-to-book ratio of 35x and a free-cash-flow yield under 1%. Numbers like that leave little room for disappointment when capital rotates out of expensive software, and Palantir has been at the front of that rotation.
Company-specific overhangs are not helping. Reports indicate that France’s domestic intelligence agency is transitioning off Palantir’s tools to domestic provider ChapsVision, and the UK National Health Service (NHS) contract is drawing renewed scrutiny. Both raise questions about Palantir’s international public-sector growth runway.
The technical picture has also turned. Michael Burry of “The Big Short” fame has a publicized short position on Palantir and has been taking a victory lap as momentum wanes, trading volume declines, and a key support level on PLTR stock has given way to fresh 52-week lows.
The Bull Case Hasn’t Disappeared Palantir’s underlying business still looks strong on paper. Q1 2026 revenue hit $1.63 billion, up 85% year over year, with U.S. revenue up 104% and U.S. commercial revenue up 133% to $595 million. Furthermore, Palantir’s GAAP operating income reached $754 million, a 46% margin, and the company closed 206 deals of $1 million or more with total contract value of $2.41 billion.
Palantir’s management responded by raising its full-year 2026 revenue guidance to $7.65 billion to $7.66 billion, with U.S. commercial guided above $3.22 billion and adjusted free cash flow guided to $4.2 billion to $4.4 billion. Additionally, Palantir’s “Rule of 40” score sat at 145%, a combination of growth and profitability few software peers can match.
Sentiment readings on PLTR are also stretched. Recent coverage notes that Palantir stock’s RSI has slipped into the mid-30s, traditionally an oversold zone where bounces can develop, and ARK Invest has reportedly been buying the dip.
Yet, the bear case still carries weight. Extreme multiples, the sector-wide software derating, the European contract setbacks, and downside momentum that includes Palantir’s worst month on record all argue the slide could extend. StockTwits chatter suggests that many retail traders are watching the $100 line specifically, with some saying they would step in if PLTR dips below it.
What to Watch Next The next scheduled catalyst for Palantir is the Q2 2026 earnings report, with management guiding to revenue of $1.797 billion to $1.801 billion. Until then, PLTR stock is likely to move with the broader software group and any further headlines around its international contracts.
Investors can watch for whether PLTR stock holds the $100 line into the close, and whether oversold conditions attract dip-buyers or simply mark a pause before another leg lower. The $100 figure is a psychological level rather than a chart-based target, and it’s a level that traders are clearly watching.
Either way, the next few sessions can help clarify whether Palantir is in for a deeper de-rating or is just quietly building a base. With CEO Alex Karp’s positive commentary on AI momentum still on the record and U.S. growth running hot, the fundamentals and the chart on PLTR stock are telling very different stories right now. Patience and modest position sizing remain reasonable approaches for anyone weighing a Palantir share stake here.
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Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
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As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Roku (ROKU - Free Report) Roku is the leading TV streaming platform provider in the United States, Canada and Mexico based on hours streamed.
ROKU is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. ROKU has a Growth Style Score of A, forecasting year-over-year earnings growth of 308.5% for the current fiscal year.
Nine analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.28 to $2.41 per share. ROKU also boasts an average earnings surprise of +107.3%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, ROKU should be on investors' short list.
Just days after investors dumped AI stocks on fears that valuations had gotten too high, Micron Technology (NASDAQ:MU) returned with a bang.
The memory-chip giant reported quarterly results that crushed expectations, and even issued a stronger-than-expected outlook. This showed that customers have committed $22 billion to secure future chip supplies.
The update sent Micron shares soaring more than 15% in after-hours trading. The rally also helped boost sentiment in the technology sector and brought back gains in semiconductor stocks.
Micron Delivers Another Massive Earnings BeatMicron’s latest results showed how much demand there is for AI infrastructure.
The company reported a revenue of $41.46 billion, beating analyst estimates of $36 billion for its fiscal third quarter. This means the revenue more than quadrupled from the $9.3 billion reported this time last year.
Adjusted earnings per share also came in at $25.11, also beating Wall Street expectations of $21 per share. Additionally, gross margins surged to almost 85%, compared to 39% a year ago. Net income also jumped to $28.24 billion from just $1.89 billion in the year-ago quarter.
The growth was thanks to the demand for memory chips used in AI data centers. Micron is currently the only U.S.-based manufacturer of high-bandwidth memory chips. This is a key component used in advanced AI processors from Nvidia and other technology companies.
Sales in Micron’s data-center business also increased more than 7x from a year ago to $11.5 billion. Cloud memory revenue climbed more than 300%. This was while mobile and client computing all posted strong growth as well.
The company also issued an upbeat forecast for the current quarter. Micron expects revenue between $49 billion and $51 billion and also forecasts adjusted earnings of $30 to $32 per share.
AI Demand Continues To Outrun SupplyPerhaps the biggest takeaway from the earnings report was management’s confidence that memory shortages are likely to continue for years.
CEO Sanjay Mehrotra said he does not yet see a clear point where supply will fully catch up with demand. The company expects tight market conditions to continue beyond 2027.
The earnings report showed that customers have committed $22 billion to secure future chip supplies. The company said it has signed 16 long-term agreements with customers across data centers, consumer electronics, and automotive markets.
These agreements include purchase commitments and cash deposits. These are designed to guarantee supply and reduce uncertainty.
Micron also revealed that its remaining contracted revenue obligations now stand at $100 billion. That figure gives investors valuable insight into future revenue visibility and suggests that customers are willing to lock in supply years in advance.
The company believes that once these agreements are implemented, they could account for half or more of Micron’s total revenue.
Wall Street Is Betting The AI Rally Isn’t OverJust a day before, investors had started dumping AI stocks amid concerns about high valuations and potential Federal Reserve rate hikes. Micron itself had fallen 13% during the selloff.
However, the market rebounded. Stocks tied to the semiconductor industry, including Qualcomm, Sandisk, and Western Digital, gained as investors regained confidence in the AI growth story.
Micron’s rise has already been one of the biggest stories in the market this year. The stock has surged 700% over the past 12 months and has grown into a company valued at more than $1 trillion.
The enthusiasm has become so intense that fund managers are creating new products designed specifically to capitalize on Micron’s volatility.
A newly launched leveraged ETF, the Roundhill T-REX 2X Long DRAM Daily Target ETF, began trading this week. It offered investors amplified exposure to memory-chip stocks. The launch reflects growing demand from traders looking to benefit from the swings seen in AI-related stocks.
Meanwhile, analysts note that large ETF rebalancing flows can magnify market moves during major events such as earnings releases.
Micron’s stock has already had an incredible run. Shares have gained 700% over the past year, pushing the company’s market value above $1 trillion. Even after such a huge rally, many investors believe there could still be more room for growth.
The strong earnings report, the $22 billion in customer commitments, and management’s confidence in future demand all support the bullish case.
At the same time, investors should expect volatility. Micron shares fell 13% just one day before earnings as concerns about AI valuations spread across the market.
That volatility has become part of the story. New investment products are even being launched to help traders take advantage of the large swings in Micron’s stock price. The latest results still suggest that the AI boom remains very much alive.
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
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Micron’s NASDAQ: MU fiscal Q3 results and the strength of its outperformance highlight a persistent problem in today’s market: there is a fundamental misunderstanding of the AI trade. AI isn’t a niche; it's not a bubble. It is the evolution of technology, and that evolution is accelerating.
Micron Technology Today
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Micron Technology
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52-Week Range$103.38▼
$1,255.00Dividend Yield0.05%
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Leading tech giants, enterprises, and research labs globally are racing to implement existing infrastructure to unlock the next generation in a virtuous cycle that could play out over years, if not decades.
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The impact on Micron is substantial, as it is the primary source of high-bandwidth memory (HBM) stacks, a component found in most GPUs designed for heavy AI training and other advanced workloads. The critical detail is that each NVIDIA NASDAQ: NVDA GPU uses six to 16 stacks of HBM, and each stack is six to 12 chips high, making demand for Micron’s product grow geometrically relative to the underlying AI GPU market.
The takeaway is that HBM markets are sold out, with new supply not expected to meaningfully impact the market until sometime in 2028. Until then, Micron is riding a wave of over-demand and pricing that is driving accelerating hypergrowth and an outlook for sustained strength over the coming six to eight quarters.
Micron, Growing Faster Than NVIDIA, AcceleratesNVIDIA set the gold standard for AI growth, topping out at 265% in Q4 2024, but Micron just lifted the bar. The company's fiscal Q3 take of $41.46 billion was not only up 345% from the prior year, but also nearly 1,550 basis points (bps) above MarketBeat’s reported consensus estimate. Strength was seen across all segments, each growing by an average of approximately 375%, led by Cloud and Datacenter, which account for more than 60% of the business. Cloud Memory grew by 300% and Datacenter ty 650%, with Mobile & Client up by 250% and Automotive & Embedded up by 310%.
Margin news was also strong. The revenue surge drove improvements across the stack, despite higher costs and capital expenditure. Critical details include the operating cash flow, which more than doubled sequentially and quadrupled year-over-year (YOY), and the adjusted free cash flow, which grew by approximately 9X to over $18 billion. Adjusted earnings per share (EPS), the marketwide benchmark for earnings quality, grew by 13X to over $25, nearly $5 or 2000 bps better than expected.
Guidance is the catalyst for this market, as it forecasts another quarter with similar sequential growth, margin strength, and earnings. The revenue forecast of $50 billion was more than 1600 bps better than expected, compounded by an even hotter outlook for earnings. Earnings are expected to exceed $31, further strengthening the company’s financial position.
Micron’s War Chest Swells: Debt FallsMicron’s business windfall is clearly reflected in its balance sheet highlights. The company’s cash balance swelled, up approximately 160% YOY, to top $30 billion, including investments and restricted cash. While liabilities also increased, they did so at a much slower pace, offset by a substantial debt reduction, to leave equity up. Looking ahead, cash flow is expected to remain robust for at least the next two years, barring any unforeseeable technological advancements, suggesting further cash and equity gains in the coming periods.
Analyst trends will likely strengthen now that fiscal Q3 results and fiscal Q4 guidance have been released. As it stands, the trends are robustly bullish, including numerous price target boosts in the weeks leading up to the earnings release. The consensus of 39 is a Buy, with a 90% Buy-side bias in the data, and a price target of $1,103. However, it is not the average price target that matters; it is the trend. June revisions pushed the high end of price targets towards $2,000, representing a 100% increase in stock price from the pre-release closing price.
Looking at Micron on a valuation basis, MU stock remains deeply undervalued, based on the pre-release earnings outlook. The post-release earnings outlook makes the value deeper, suggesting this stock could easily rise by 200% to 300% in the near-term and more over the long. Micron’s biggest risk is industry cyclicality and potential for oversupply, but that is a problem for the future. Supply-and-demand metrics, the timeline for capacity expansions, and analysts' commentary suggest there is little risk of oversupply at this time. The more likely scenario is that the undersupply persists well into 2028 and potentially longer.
Price action reflects the strength of the results and guidance, indicating the uptrend will likely continue. MU shares gained more than 15% to hit fresh highs following the release, amid rising market momentum. In this scenario, MU shares will likely continue higher and may accelerate. Not only is the outlook robust, but FOMO may set in the market, spurring sidelined cash to move.
Should You Invest $1,000 in Micron Technology Right Now?Before you consider Micron Technology, you'll want to hear this.
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Robotics and automation are rapidly becoming essential infrastructure across healthcare, manufacturing, logistics, and many other industries.
"Physical AI" is coming to the United States, and there are four ways that investors can gain exposure to this new robotics revolution. Plus, learn which seven companies are most positioned to benefit as intelligent robots enter the workforce.
HomeIndustriesComputers/ElectronicsEarnings OutlookEarnings Outlook‘It is hard to overstate how significant last night’s earnings were’Published: June 25, 2026 at 10:38 a.m. ET
The technology sector is increasingly taking its cues from an understated memory-chip manufacturer based in Boise, Idaho.
That company is Micron Technology MU, which Daniel O’Regan, managing director for equity trading at Mizuho, calls “probably a top 3 most important stock in the world.” In his book, when it comes to market influence, Micron ranks behind semiconductor powerhouse Nvidia NVDA and perhaps Alphabet GOOGL GOOG.
Micron Technology (MU +16.12%) has become one of the key players in the artificial intelligence (AI) boom. When we think of AI, our first thought may be the chips powering AI tasks -- but these chips must be accompanied by something else, and that's memory and storage capabilities. This is where Micron comes in, offering a wide range of solutions.
And this has translated into explosive growth for the company. Earnings have reached record levels, and the latest quarterly report reinforced this trend. Micron's revenue soared in the triple digits to more than $41 billion, and net income jumped in the quadruple digits to $28 billion. Both largely beat analysts' estimates. The company's message was positive too: Demand from AI customers is soaring, and we may be in the early stages of this growth opportunity.
As for Micron stock, investors have recognized the company's potential and piled in: The shares have skyrocketed in recent times, gaining more than 260% this year alone.
Considering all of this, is Micron a buy after its blowout earnings report? Let's find out.
Image source: Getty Images.
A memory specialist First, a bit of background on Micron. The company makes various types of memory and storage, including DRAM, NAND, and HBM. These products, offering memory as a computer or processor works, long-term storage, and fast memory access, cover the various needs of AI projects. Customers, as they run AI workloads, need chips from players like Nvidia, but they also need this memory capacity -- and that's created enormous demand for Micron and others in the field.
In fact, demand is so high that, even with multiple players in the space, from Seagate Technology to SK Hynix, it's steadily surpassed supply. This means that competition hasn't been a problem for Micron.
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All of this has led to tremendous earnings growth for this memory player, as we've seen in recent quarters, and the company confirmed the trend in the latest period. Quarterly revenue reached record levels for the fifth consecutive time. Free cash flow climbed to record levels of $18 billion, and importantly, gross margin came in at more than 84%. Gross margin is particularly key because it shows the company is highly profitable on sales.
16 customer agreements Micron also signed 16 customer agreements that offer the company and investors visibility on revenue ahead, reinforcing the idea that the demand we've seen so far is set to continue. The deals, with data center, consumer, and automotive customers, run through 2030 and involve commitments to purchase a certain volume of memory products. The company expects $22 billion in commitments from the deals signed so far, and it expects half of its revenue to eventually come from such strategic agreements.
This visibility on revenue ahead is positive as it helps guide Micron as it invests in areas such as manufacturing capacity.
"The early innings" of AI And speaking of the future, the company offered an extremely positive message, saying we're in "the early innings" of the AI revolution and that the expansion of AI into various industries represents key memory opportunities. For example, humanoid robots carry 10 times the memory of a vehicle with a driver assistance system -- this means that, as robotics systems advance, Micron may see a new and lasting wave of growth down the road.
Now let's return to our question: Considering all of this exciting news, is Micron a buy? Or is it too late to get in on this stock after its enormous gain? Though Micron's stock has soared, and its valuation has climbed, the valuation level still remains reasonable.
MU PE Ratio (Forward) data by YCharts
Today, Micron trades at 16x forward earnings estimates, which is lower than levels just a year ago -- and the stock remains cheaper than other tech giants such as Nvidia and Alphabet, for example.
This price level, along with clues that suggest Micron may benefit from the AI boom for quite some time make now -- even after the stock's big gain -- a good time for growth investors to add this stock to their portfolios.
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) and Micron Technology (NASDAQ:MU) both posted blockbuster AI infrastructure quarters, but the market reacted in opposite directions. NVIDIA sells the compute. Micron sells the memory that keeps those GPUs fed.
Comparing them now makes sense because each just told investors something different about where AI hardware spending actually lands in 2026.
Blackwell Carries NVIDIA. HBM Carries Micron. NVIDIA’s Q1 FY27 report on May 20, 2026 showed revenue of $81.615 billion, up 85.23% year over year, with Data Center alone at $75.246 billion. Networking inside that segment grew 199%, a number that says NVLink and Spectrum-X are pulling weight, not just GPUs. Non-GAAP EPS landed at $1.87.
Jensen Huang framed the moment bluntly: “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.”
Micron’s Q2 FY26 earnings report on March 18, 2026 told a wilder cyclical story. Revenue hit $23.86 billion, up 196.29%, with non-GAAP EPS of $12.20 against a $8.73 estimate. Cloud Memory revenue alone reached $7.75 billion at a 66% operating margin.
CEO Sanjay Mehrotra said memory has become “a strategic asset” for hyperscale customers, and the board approved a 30% dividend hike to back that view.
Platform Moat vs. Capacity Bet NVIDIA leans on CUDA, NVLink Fusion, and the announced Vera Rubin platform to lock customers into a full stack. Roughly half of Data Center revenue still comes from hyperscalers, and management is pushing into sovereign and industrial AI to diversify. The catch is China: zero H20 Data Center shipments this quarter, and forward guidance assumes that stays at zero.
Business Driver NVIDIA Micron Main growth engine Blackwell GPUs, NVLink networking HBM and DRAM for AI accelerators Guidance $91.0B Q2 revenue $33.50B Q3 revenue Gross margin 75.0% non-GAAP 74.4% GAAP, guiding to ~81% Micron’s bet is physical. Capex of $6.39 billion in a single quarter funds HBM capacity that order books reportedly stretch into 2027. Being the only U.S.-based memory manufacturer matters for sovereign AI buyers, and a forward P/E of 11 suggests the market still treats this as cyclical. NVIDIA’s P/E sits near 32, which is hardly cheap but reflects platform durability.
The Market Already Voted Differently Since reporting, NVIDIA shares are down 10.38% to $200.04. Micron is up 127.9% to $1,051.77, although it dropped 13.18% on June 23 ahead of its next earnings report.
Polymarket traders give Micron a 95.2% probability of beating quarterly earnings, while NVDA’s near-term crowd consensus clusters at $195 to $210. I will be watching whether Micron’s gross margin actually reaches the guided 81% and whether NVIDIA’s $119 billion in supply commitments converts cleanly.
NVIDIA for Durability, Micron for Torque For investors researching AI exposure that survives a memory price reset, NVIDIA’s profile stands out. The software moat and networking growth give the platform a second leg the bears keep underrating, even with China at zero.
For investors comfortable with cyclicality, Micron offers more torque, because HBM scarcity is real and the forward multiple still leaves room. The shared risk on both theses is a softening in hyperscaler capex guidance later this year, the one variable that pressures both stories at once.
Key Takeaways Micron's fiscal Q3 earnings and revenues surged as AI-led memory demand lifted data center sales.Micron signed 16 strategic customer agreements covering about 20% of DRAM and one-third of NAND volume.Micron expects Q4 revenues of about $50B and sees DRAM and NAND supply-demand staying tight beyond 2027. Micron Technology (MU - Free Report) reported third-quarter fiscal 2026 non-GAAP earnings of $25.11 per share, beating the Zacks Consensus Estimate by 17.39%. The company reported earnings of $1.91 per share in the year-ago quarter.
Revenues soared 345.7% year over year to $41.46 billion and surpassed the Zacks Consensus Estimate by 12.91%. Revenues jumped 73.7% sequentially. The upside was driven by robust AI-led memory demand, with data center revenues exceeding $25 billion, an annualized run rate of more than $100 billion.
Micron announced 16 strategic customer agreements (SCAs) across data center, consumer and auto markets in the reported quarter. These agreements represent roughly 20% of DRAM volume and one-third of NAND volume over the covered period.
The company expects approximately half or more of its revenues to eventually be under SCAs. Under the agreements signed so far, Micron projects $22 billion in cash deposits and related financial commitments, supporting longer-term supply visibility and financial predictability.
MU’s Q3 Top-Line DetailsMicron’s top-line growth benefited from tight DRAM and NAND supply, stronger pricing and accelerating demand tied to AI infrastructure. MU noted that industry demand for both DRAM and NAND continues to significantly exceed supply.
DRAM revenues were $31.3 billion, accounting for 76% of total revenues in the fiscal third quarter. DRAM revenues increased 67% sequentially, helped by low-single-digit bit shipment growth and a low-60s percentage increase in average selling price (ASP).
NAND revenues were $9.9 billion, representing 24% of total revenues. NAND revenues increased 99% sequentially, driven by a mid-single-digit increase in bit shipments and a mid-80s percentage rise in ASP.
MU’s Business Units Set RecordsCloud Memory Business Unit revenues were a record $13.77 billion, up 77.7% sequentially and 306.6% year over year.
Core Data Center Business Unit revenues were a record $11.52 billion, up 103% sequentially and 653.2% year over year.
Mobile and Client Business Unit revenues were a record $11.52 billion, up 49.4% sequentially and 254% year over year. The sequential revenue growth was driven by higher pricing.
Automotive and Embedded Business Unit revenues were a record $4.63 billion, up 71.1% sequentially and 311.2% year over year. The improvement reflected higher pricing and higher bit shipments.
MU’s Q3 Margins ExpandNon-GAAP gross margin was 84.9% in the reported quarter, up from 74.9% in the fiscal second quarter and 39% in the year-ago quarter.
Cloud Memory Business Unit gross margin expanded to 83% from 74% reported in the prior quarter, driven by higher pricing. The company reported Cloud Memory gross margin of 58% in the year-ago quarter. On a sequential basis, the core Data Center Business Unit’s gross margin improved to 87% from 74%, aided by higher pricing and a favorable mix. The company reported Data Center gross margin of 38% in the year-ago quarter.
Mobile and Client Business Unit gross margin reached 87% compared with 79% in the prior quarter and 24% in the year-ago quarter. Automotive and Embedded Business Unit gross margin surged to 79% compared with 68% in the prior quarter and 26% in the year-ago quarter.
Non-GAAP operating expenses were $1.52 billion, up 6.8% year over year and 34% sequentially.
In the third quarter of fiscal 2026, non-GAAP operating income came in at $33.68 billion, a significant rise from $2.49 billion reported in the year-ago quarter and $16.46 billion reported in the previous quarter.
Micron’s Balance Sheet Shows Strong Liquidity LevelMU exited the quarter with $30.2 billion in cash, marketable investments and restricted cash. Liquidity was $32.2 billion at the end of the fiscal third quarter.
Micron generated $25.39 billion in operating cash flow in the quarter. Capital expenditures, net of proceeds from government incentives and asset sales, were $7.1 billion, resulting in adjusted free cash flow of $18.3 billion.
The company declared a quarterly dividend of 15 cents per share, payable on July 21, 2026, to shareholders of record as of July 6. Micron did not repurchase shares during the fiscal third quarter.
MU’s Guidance Points to More StrengthFor the fourth quarter of fiscal 2026, Micron expects revenues of $50 billion, plus or minus $1 billion. The company projects a non-GAAP gross margin of approximately 86%.
Non-GAAP operating expenses are expected to be approximately $1.65 billion. Adjusted earnings are projected at $31 per share, plus or minus $1, based on roughly 1.15 billion diluted shares.
Micron now expects supply-demand conditions for both DRAM and NAND to remain tight beyond calendar 2027. In DRAM, the company expects industry DRAM bit shipments in calendar 2026 to grow in the low to mid-20s percentage range, slightly above MU’s prior outlook. In NAND, Micron expects industry NAND bit shipments in calendar 2026 to grow approximately 20%, unchanged from its prior expectations.
Stocks to ConsiderCurrently, Micron sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Credo Technology (CRDO - Free Report) , Hewlett Packard Enterprise (HPE - Free Report) and Microchip Technology (MCHP - Free Report) . Each of the three stocks sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Credo, Hewlett Packard Enterprise and Microchip is currently pegged at 39.3%, 31.98% and 36.82%, respectively. Year to date, shares of Credo, Hewlett Packard Enterprise and Microchip have jumped 86.9%, 102.9% and 45.1%, respectively.
Item 1 of 2 The Micron logo in this illustration taken June 11, 2026. REUTERS/Dado Ruvic/Illustration
[1/2]The Micron logo in this illustration taken June 11, 2026. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
CompaniesSAN FRANCISCO, June 25 (Reuters) - Memory chipmakers have for decades been trapped in boom-bust cycles, with capacity buildouts hitting the market just as demand craters. Micron, Samsung and SK Hynix are now trying to convince investors this time is different, arguing long-term deals will keep cash flowing even if the datacenter boom bursts.
Micron (MU.O), opens new tab said on Wednesday customers such as Nvidia (NVDA.O), opens new tab had committed $22 billion to lock in supplies of memory chips, playing up huge growth in five-year "take-or-pay" deals that require clients to either buy its chips or hand over cash.
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The U.S. company's deals follow the footsteps of SK Hynix (000660.KS), opens new tab and Samsung (005930.KS), opens new tab, which have also been signing long-term supply agreements with their customers.
However, it is still a risky bet and memory stocks remain prone to wild market swings, analysts said. Days before Micron's results, a tech stocks rout led by memory makers wiped out over $1 trillion in value on worries over lofty valuations.
"The main question heading into Micron earnings... was how durable memory pricing power really is. What they showed through longer-term strategic agreements is that visibility is improving and any downside risk is getting pushed further out," said Jake Behan, ETF-provider Direxion's capital markets head.
"What matters from here is not whether memory pricing eventually normalizes as we know it likely will, it is about who captures and monetizes that pricing power while it lasts."
Memory has become so critical to AI chips such as those made by Nvidia (NVDA.O), opens new tab that customers no longer treat Boise, Idaho-based Micron as a commodity supplier to be played off against rivals for lower prices, but as a strategic partner whose factory expansions they must underwrite to lock in supply.
Despite joining the $1 trillion valuation club earlier this year, Micron reported an annual loss of $5.3 billion as recently as 2023, driven by a collapse in spending on consumer electronics after the frenzy of pandemic gadget upgrades.
"Customers have put billions of dollars on Micron's balance sheet as a show of confidence and their commitment toward this new business model," its chief business officer, Sumit Sadana, told Reuters.
Despite agreements that are as good as cash contracts, Micron said it will take time to build new factories, keeping supplies tight until at least 2027.
MEMORY CHIPMAKERS HAVE TRIED LONG-TERM DEALS BEFOREThe famously cyclical memory industry has tried to lock in long-term deals before. But past attempts failed to smooth ups and downs because memory was a commodity, letting electronics makers swap suppliers and squeeze prices at will.
Even with AI, long-term hardware agreements could stand so long as customers see real demand and application. Any crack, whether a wobble in orders or doubts about the AI buildout, could send them back to the negotiating table.
"The bear case is that these contracts only hold while supply remains tight. If demand softens and the market turns, there is a risk they are renegotiated or abandoned, which would quickly reintroduce volatility," said Ben Barringer, head of technology research at Quilter Cheviot.
But this time things are different as there is real money on the line. Having customers pay cash to lock in commitments means Micron earns money regardless of whether the agreements go through or not.
It also gives the broader AI demand narrative some legitimacy, showing that customers think it is worth spending billions just to ensure chip orders are confirmed.
Reporting by Stephen Nellis in San Francisco, Aditya Soni and Zaheer Kachwala in Bengaluru; Editing by Pooja Desai and Arun Koyyur
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James Demmert discusses the technology sector, how oil prices are influencing investor sentiment, and whether the rally can broaden beyond tech. He also offers his takeaways from Micron's (MU) earnings and what it signals for the market as the report reinforces demand for AI.
Micron Technology (NASDAQ:MU | MU Price Prediction) has climbed from roughly $127.60 a year ago to past $1,048 as the AI memory cycle accelerated. After a blowout fiscal Q3, our proprietary model says the easy money has already been made.
Our 24/7 Wall St. price target for Micron is $889.73, implying 15.14% downside from the current $1,048.51 level. We rate shares a sell with high confidence (90%). The trailing valuation is fully extended, insider selling has been unusually heavy at peak prices, and the forward setup leaves limited room for a positive surprise.
24/7 Wall St. Price Target Summary Metric Value Current Price $1,048.51 24/7 Wall St. Price Target $889.73 Upside/Downside -15.14% Recommendation SELL Confidence Level 90% A Note Before We Begin Our 24/7 Wall St. price target of $889.73 sits below where Micron trades today. Real upside could come from HBM4E scaling to volume production in calendar 2027 or fresh multi-year Strategic Customer Agreements extending revenue visibility well past fiscal 2027. Consider our target one datapoint among many. A detailed bull case appears below.
A Historic Run Built on a Blowout Quarter Micron’s price action has been extraordinary. Shares are up 267.54% YTD, 721.72% over one year, and 39.62% in the past month.
The trigger was Q3 FY2026 earnings released June 24: revenue of $41.46B versus $35.25B consensus, a 17.60% beat and +345.7% YoY, with non-GAAP EPS of $25.11 versus $20.28 expected. GAAP gross margin hit 84.6%, a 46.9 point YoY expansion.
CEO Sanjay Mehrotra called the results evidence of “the strategic value of memory in the AI era.” Q4 guidance of $50B in revenue and $31 EPS at the midpoint suggests momentum continues. Shares now sit just 16% below the 52-week high of $1,213.56.
Why Bulls See a Breakout Ahead Bulls have ammunition. 39 of 44 analysts rate MU a buy, with a consensus target of $1,022.92. HBM4 is already in high-volume shipments to the lead customer, and HBM4E volume production is teed up for 2027. Free cash flow hit $18.30B in Q3 alone, up 995% YoY, and management approved a 30% dividend increase.
If Q4 lands at the $31.00 EPS guide, the forward multiple compresses fast. Our bull scenario tags MU at $1,284.33 over 12 months, a 22.49% return, with a path to $1,305.77 by May 2027.
Several analysts expect a strong upside. Barclays analyst Tom O’Malley raised the firm’s price target on Micron to $2,000 from $1,175 and keeps an Overweight rating following the earnings report while BofA raised the firm’s price target to $1,550 from $1,500 and keeps a Buy rating. Citi raised the target to $1,400 with a Buy rating and Goldman Sachs raised the target to $1,100 with a Neutral rating.
The Risks Worth Watching Insider activity is the loudest warning. CEO Mehrotra sold across 63 separate transactions on May 1 and May 29, with May 29 prints between $942.14 and $979.37. Capex ran $7.83B in Q3, and a $325M loss on debt prepayments hit the quarter.
Memory remains cyclical, HBM4 carries lead-customer concentration risk, and Reddit’s WSB sentiment registers 40 versus 88 in options threads, signaling fraying conviction at the edges.
Bulls would argue insider selling reflects portfolio diversification at all-time highs rather than a fundamentals call, and that record capex locks in HBM share through 2027. Our bear case implies $650.68 over 12 months, a 37.94% drawdown.
The Risk Isn’t Worth the Reward Here The 24/7 Wall St. price target of $889.73, a sell rating, and 90% confidence reflect a stock that has priced in two years of perfect execution inside six months. We would be a buyer below $750, where forward P/E sinks toward 13x.
We would stay sidelined above $1,000 until Q4 actuals confirm the $31 EPS guide and Strategic Customer Agreement detail emerges. After a +538% move since September 2025, the setup favors patience over chasing.
Micron Price Prediction 2026-2030 Here is where our model projects Micron could trade as the AI memory cycle matures and pricing normalizes from current peaks.
Year 24/7 Wall St. Price Target 2026 $889.73 2027 $870.00 2028 $855.00 2029 $842.00 2030 $832.75 These projections assume Micron executes on HBM4 and HBM4E ramps while memory pricing mean reverts. Significant upside could come from a longer-than-expected AI capex cycle; meaningful downside could come from a hyperscaler digestion phase or a HBM share-loss event.
Micron Technology stock is soaring this morning after the company posted blockbuster Q3 results, featuring a nearly 350% year-over-year increase in revenue to $41.46 billion.
Still, the broader semiconductor complex is not following Micron’s lead – with Intel INTC, Advanced Micro Devices Inc, and even Nvidia failing to participate in the rally on Jun. 25.
While that may seem a bit puzzling on the surface, there’s actually three very simple reasons why these chipmakers aren’t moving in sync with Micron stock today.
In its earnings release, Micron confirmed that its High-Bandwidth Memory (HBM), the hyper-fast memory stacked directly onto artificial intelligence (AI) chips, is completely sold out through year-end, with customers locking in $22 billion in agreements.
While that’s incredible for MU shares, it actually highlights a severe industry supply constraint.
If the likes Nvidia or AMD can’t secure enough HBM from suppliers (Micron or SK Hynix), they can’t ship their top-tier AI graphic processing units (GPUs), including the Blackwell architecture or the MI300 series.
Micron Technology’s tight supply cap confirms that compute chipmakers are physically limited in how fast they can scale their own near-term revenues – a broader concern that is clearly reflected in their muted performance today.
The broader semiconductor sector has been dealing with an intense multi-day wave of profit-taking.
Investors are reassessing stretched valuations and demanding that astronomical capital expenditure from big tech hyperscalers translates into immediate profits.
Because names like Intel and AMD have already priced in massive, flawless growth, a solid update from a sub-component supplier like Micron is being treated as a “sell-the-news” event for the rest of the tech stack.
Note that Advanced Micro Devices Inc and INTC are currently going for about 85x and more than 200x forward earnings; so the initial pre-market gap up simply gave institutional traders a “highly liquid” exit point to lock in profits.
Continued pressure on Intel and AMD shares makes sense also because these companies actually face entirely different architectural and competitive pressures.
INTC is battling high turnaround execution costs as it positions itself as a Western foundry choice, and Advanced Micro Devices is locked in an expensive market-share war with Nvidia in the data center.
A spike in memory pricing pads MU’s margins immediately, but it doesn’t solve Intel’s execution timeline or alter AMD’s market share positioning against Nvidia.
That said, Wall Street hasn’t thrown in the towel on either. Both remain “Buy” rated among experts, with the most ambitious price targets calling for well over 20% upside from their current levels.
Neither of the two chipmakers, however, pays a dividend to attract income-focused investors.
In recent weeks, the market has shown artificial intelligence fatigue, as concerns have mounted and investors wonder whether the rally can continue without a pullback first.
However, some of the AI-bottleneck trades remain as strong as ever.
The AI memory maker Micron (MU +16.12%) just reported blowout third-quarter earnings results. Earnings per share of $25.11 beat Wall Street consensus estimates by $4.72. Revenue of $41.5 billion beat estimates by $6.4 billion.
Revenue quadrupled from the prior year. Furthermore, Micron is now guiding to $50 billion in revenue for its current quarter.
Micron also said it has secured 16 contracts with customers, including data centers and automakers, in the three- to five-year range that could bring in $22 billion. This provides investors with solid visibility into future revenue.
Micron stock traded nearly 14% higher, as of 11:50 a.m. ET.
While the company has done incredibly well, with its stock up over 800% in the past year, there is still debate about how far memory stocks can run.
Here’s why everyone is talking about Micron.
Image source: Micron.
Can a historically cyclical stock become a long-term AI powerhouse?Micron is one of the leading memory manufacturers, specifically regarding dynamic random-access memory (DRAM) and NAND flash memory.
Memory is key to feeding data to graphics processing units (GPUs), so as GPU clusters and data centers scale, more memory is needed.
Analysts at UBS have previously said that DRAM is likely to be constrained until at least halfway through 2028, while NAND is likely to be constrained until at least the end of 2027.
However, prior to this AI supercycle, Micron and other memory makers were viewed as cyclical stocks due to the difficulty in balancing supply and demand within a reasonable time frame.
Some Wall Street analysts still think this is the early innings for the memory trade.
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"We are seeing no cracks in AI demand on the chips/hardware or software front which gives us a bright green light to own the core tech winners into year-end," Wedbush analyst Dan Ives said in a recent research note.
But not everyone is entirely sold.
Bernstein analyst Mark Newman thinks Micron’s new strategic customer agreements could include pricing ceilings, which would limit how much Micron could raise memory prices.
"We wonder if the ceiling suggests limited headroom," he wrote in a recent research note, suggesting these contracts likely wouldn’t be able to avoid cyclicality.
Still subject to the AI tradeMicron has undoubtedly been on a phenomenal run and looks poised to benefit from the AI trade as much as any company.
The question investors need to ask is what happens to companies like Micron if the AI trade hits a wall, because the business and demand for memory are really dependent on AI.
It’s quite possible that the current AI run lasts much longer than investors think, or that AI will turn into a much bigger winner long term, even if it runs into some obstacles along the way.
On the surface, Micron’s valuation of close to 19 times forward earnings is not seemingly out of line. But the big question is what happens to the earnings, which have risen 1,368% year-over year.
If long-term investors still want exposure to memory, now a key part of the AI trade, I think they can buy Micron. But they should dollar-cost average to smooth out their cost basis over time and be prepared for volatility.
Liz Ann Sonders with @CharlesSchwab explains what she calls a "rotating concentration" in tech, pointing out that investors are pouring out of the Mag 7 and into other rising tech giants like Micron (MU). On the "great chip dip" in AI semiconductor names like Nvidia (NVDA), Liz Ann talks about the various factors she sees eating into price action of it and related stocks.
